Business before Questions

New Member

The following Member took and subscribed the Oath required by law:
Helen Margaret Lilian Morgan, for North Shropshire.

New Writ

Ordered,
That the Speaker do issue his Warrant to the Clerk of the Crown to make out a new Writ for the electing of a Member to serve in this present Parliament for the Borough Constituency of Southend West in the room of Sir David Anthony Andrew Amess, deceased.—(Mark Spencer.)

Oral
Answers to
Questions

Wales

The Secretary of State was asked—

Rail Infrastructure

Tony Lloyd: What plans the Government have to provide funding for rail infrastructure in Wales.

Geraint Davies: What plans the Government have to provide funding for rail infrastructure in Wales.

Simon Hart: May I wish you, Mr Speaker, and of course House staff and Members a very happy 2022? May I also take the opportunity to acknowledge some fantastic news for Welsh sheep farmers? As many in this House will be aware, the US ban on the import of UK lamb has been lifted as of 3 January, which brings Welsh farmers one step closer to putting their first-class lamb in front of more than 300 million US consumers for the first time in 20 years.
More than £340 million has been provided for enhancements to Welsh rail, including investing in the core valley lines, Cardiff Central station and the electrification of the Severn tunnel.

Tony Lloyd: Happy new year to you, Mr Speaker, and to all those involved with the House.
You will know, Mr Speaker, that the north Wales economy is massively integrated with the economy of the north-west. We have been promised, although it is very slow in coming, the northern powerhouse, because of the very poor infrastructure and very poor journey times across the north of England. Why have Welsh Ministers not demanded that north Wales be included in that northern powerhouse structure, and why are Welsh Ministers letting down north Wales so badly?

Simon Hart: I disagree with the hon. Member’s comments about infrastructure. As he knows, we introduced the Union connectivity review; its proposals have just been published and we are working through them as we speak. We have spent a huge amount of money on road and rail infrastructure throughout Wales—and, for that matter, the rest of the Union—so he should not take such a gloomy view of things. I absolutely endorse his comments, however, about the fact that north Wales and the north-west of England—and, indeed, the rest of the UK—are integrated economies, and we need to look at them holistically.

Geraint Davies: Blwyddyn newydd dda—happy new year—Mr Speaker.
The Secretary of State knows that HS2 will halve the time it takes to get from London to Manchester from two hours and 10 minutes to one hour and 10 minutes, but it will still be three hours to get to Swansea. Will he be taking forward the Welsh Affairs Committee’s proposal to give Wales its fair share of HS2 funding on the same basis as Scotland, which would give us an extra £4.6 billion for levelling up, net zero and connecting the Union? Will he meet me and Professor Mark Barry to help prepare to make the case to the Treasury to take this forward?

Simon Hart: I am always happy to meet the hon. Gentleman. He is nothing if not persistent and consistent in his campaigning. I should remind him—I suspect I do not need to—of the significant rail funding that has already come into Wales, but if it helps, I am always keen to look at new, innovative ways that will encourage investment and create jobs. I am very happy to do that.

Lindsay Hoyle: May I welcome the new shadow Secretary of State, Jo Stevens, to her new position, and thank her for what she did previously?

Jo Stevens: Thank you very much, Mr Speaker; happy new year to you, and, if I may, blwyddyn newydd dda i chi i gyd—happy new year to all.
I am afraid I was a bit disappointed with the Secretary of State’s answer to the question from my hon. Friend the Member for Swansea West (Geraint Davies) about HS2 reclassification as an England-only rail project, because it is utterly illogical to designate it an England and Wales project. Crossrail has an England-only classification; HS2 should as well. In addition to that missing £4.6 billion of rail funding for Wales, the analysis of his own Treasury colleagues confirms that HS2 will result in an economic disadvantage to Wales estimated at £150 million every year. Levelling up will remain an empty Government slogan unless he persuades his Cabinet colleagues to cough up, so will he do that?

Simon Hart: May I also welcome the hon. Lady to her place? I much enjoyed our time on the Digital, Culture, Media and Sport Committee where we worked in harmony on many different subjects for quite a long time, and I was hoping we might be able to continue that habit across the Dispatch Box; things are starting quite well, I think. However, I am grateful for the hon. Lady’s question and look forward to further discussions. I would just point out that there has been more than £430 million of rail funding so far, including £125 million for the core valley lines and £58 million for Cardiff Central station; I could go through the list but I think Mr Speaker would stop me. This constant refrain, and going over old ground, about whether HS2 has any benefits for Wales is an overused cliché; we all know there are significant direct and indirect benefits to Wales from the HS2 project and that will continue to be the case.

Jo Stevens: There is another conversation the Secretary of State should be having with Cabinet colleagues about HS2 and Wales. Ministers have previously confirmed that around 2 million tonnes of steel will be used across HS2, but I am going to upset him again by mentioning that £4.6 billion that the Government are cutting from Wales. The Transport Minister has just confirmed that  there is no target for the use of UK or Welsh steel in HS2 construction, so will the Secretary of State commit today to making the case in Cabinet for a Welsh steel target for HS2 construction to protect Welsh steel jobs, and will he come back to the House to confirm that he has done that?

Simon Hart: I am very happy, as ever, to make the case for Welsh steel; indeed, we have done so on numerous occasions, and if the hon. Lady is in any doubt about our commitment to it she need only turn her mind back to the beginning of the pandemic when nearly 1,000 steelworkers in her own city were saved as a result of Government intervention. Our commitment to Welsh steel, and in particular its being used strategically and extensively in UK infrastructure projects, is completely undiminished, and I am always happy to join forces with her to make that case.

Renewable Energy Generation: North Wales

David Jones: What recent discussions he has had with Cabinet colleagues on the development of large-scale renewable energy generation in north Wales.

Simon Hart: We recently opened the contracts for difference renewable energy support scheme, with £285 million per year available for projects in Wales, Scotland and England. Nuclear will also play an important role as a low-carbon source of electricity and we continue to explore how we might support a nuclear project at Wylfa.

David Jones: If we are to achieve net zero while maintaining economic growth, we need more large-scale low-carbon generating projects of the sort represented by the tidal lagoon proposed for Colwyn bay in my constituency. That would have an in-store capacity of over 2 GW and make a huge contribution to national energy security, so is my right hon. Friend prepared to meet me and my hon. Friends the Members for Aberconwy (Robin Millar) and for Vale of Clwyd (Dr Davies), who also have a constituency interest, to discuss this project and see what the Government can do to help move it forward?

Simon Hart: I can definitely give my right hon. Friend that commitment, and I would be more than happy if he wanted to bring additional stakeholders from the area into that meeting because there is not only huge potential for nuclear; he mentioned a tidal lagoon and there is also the commitment already made around the Holyhead hydrogen hub; and of course there is almost limitless potential in the Celtic sea for floating offshore wind. I would like to discuss with him and others exactly what opportunities they present.

Liz Saville-Roberts: Blwyddyn newydd dda, Mr Llefarydd—I wish you a wonderful new year. A National Trust-run hydro scheme with eight sites in Eryri has reached its target of producing 20 million kW of energy within eight years; that is enough electricity to power 5,300 homes for one year. The scheme has helped local communities to develop their own community hydro schemes but technical issues in connecting to the grid make that no easy task. What is the Secretary of State’s Government doing to upgrade the electricity grid in rural Wales to enable more such schemes?

Simon Hart: The right hon. Lady has raised this issue with me a few times and her point about that initiative is really well made. I am very happy to go with her and talk about particular infrastructure requirements. These things are not straightforward, as she knows, but if there are sensible proposals that we can discuss with not only the relevant Department, but the Welsh Government, who will have a role in this, I would be very happy to do that.

Liz Saville-Roberts: I have heard the Secretary of State mention the offshore wind potential of the Celtic sea. He will know that, as part of Plaid Cymru’s co-operation agreement with the Welsh Government, both parties agree that further powers are needed to support our path to net zero—specifically on the management of the Crown Estate and its assets in Wales. Two months ago, the Under-Secretary of State for Wales, the hon. Member for Monmouth (David T. C. Davies), said that he would look with interest at my Crown Estate (Devolution to Wales) Bill. Given that there is now a clear majority in the Senedd to support the principle of Wales having the same powers, remember, as there are regarding the Crown Estate of Scotland, will the Minister also support my Bill to ensure that the profits of offshore wind go to the people of Wales?

Simon Hart: The Under-Secretary of State for Wales, my hon. Friend the Member for Monmouth (David T. C. Davies), was very disappointed not to be here to answer this question in person; he is diligently following Welsh Government regulations on covid isolation and sends his apologies. That said, the relationship that the Crown Estate enjoys with the UK Government, the Welsh Government and stakeholders works very well. I do not think there is any public interest or appetite for altering the terms of that arrangement. Frankly, it is a case of, “If it ain’t broke, don’t fix it”, but I am always happy to listen to the right hon. Lady’s arguments.

Covid-19 Booster Vaccinations

Fay Jones: What steps the Government are taking to support the roll-out of covid-19 booster vaccinations in Wales.

Simon Hart: Booster vaccinations are absolutely critical in strengthening our defences. That is why I and the Secretary of State for Defence have made an additional 98 armed forces personnel available to support the vaccination programme in Wales. We have confirmed an additional £270 million that the Welsh Government can spend in advance of budgets being finalised at supplementary estimates.

Fay Jones: Blwyddyn newydd dda, Mr Speaker. The personnel that the Secretary of State mentioned have been brilliantly organised from Army HQ Wales, which is based in Brecon barracks in my constituency, and I put on record again my thanks that the plans to close the barracks have been scrapped. The Army has been brought in three times to help us in Wales, most recently during the booster programme. The fact that we have a military assistance programme ready to support us in times of need is a strength of our Union, so will he continue to liaise with the Welsh Government to ensure that they have all they need to manage the pandemic?

Simon Hart: Absolutely. My hon. Friend is right, and I cannot begin to tell the House how many times I have met members of the public in the past few months who have been filled with confidence and pride when they have arrived at a vaccination or testing centre to see representatives of the armed forces there to greet and look after them through that often quite difficult process. The comments that she makes are well received, and will be by the number of servicemen in her area. The answer to her question is emphatically yes. I note that the Welsh footprint of the MOD—the number of MOD personnel in Wales—has now increased as a result of recent MOD announcements, and that will make this job that much easier.

Gerald Jones: Over 75% of eligible adults in Wales have already had their booster, thanks in no small part to the fact that the Welsh Government have earned the respect and trust of the people of Wales due to the clear and consistent messaging throughout the pandemic. What lessons does the Secretary of State think that the Prime Minister and his Government could learn from the example set by the Labour Government in Wales?

Simon Hart: That is a slightly cheap shot, especially in a week when, under Welsh Government guidelines, it seems that it is all right for people to go to a pub but not to their office. They can watch the rugby from the clubhouse but not from the touchline. They can go to a gym but they cannot partake in an outdoor activity such as parkrun. There is a huge number of mystifying and contradictory positions—the hon. Gentleman goaded me into that. The vaccine programme has to be one of the best examples ever of co-operation, not competition, between Governments. That has been absolutely essential and it has been done in a good spirit, with professionalism, and has been an enormous success.

Support for Businesses

Owen Thompson: What recent discussions he has had with Cabinet colleagues on support for businesses in Wales.

Kirsten Oswald: What recent discussions he has had with Cabinet colleagues on support for businesses in Wales.

Simon Hart: I am pleased that the Welsh Government have followed the lead of the UK Government in offering business rate relief to support the hospitality sector. The UK Government have supported Welsh businesses through £2.4 billion of coronavirus-related loans, £3.5 billion to the self-employment income support scheme and other measures.

Owen Thompson: The Federation of Small Businesses has warned that only a quarter of its members are ready for the new Brexit import controls, and that many will simply abandon trading with the EU if they are unable to receive support. What plans do this Government have to support businesses in Wales and the other countries of the United Kingdom in bearing the costs of their failed Brexit policies?

Simon Hart: The hon. Gentleman’s comments are not reflected by the businesses that I speak to in Wales. They are looking forward in an optimistic and positive way as we climb our way out of covid. They accept the decision in Wales where, unlike his, nearly 55% of our nation voted in favour of leaving the European Union, so they are simply reflecting the views of the majority. They are confident that there is a healthy future to be had, and what is more, there are more people in work now than there were before the pandemic.

Kirsten Oswald: With the Prime Minister promising to take advantage of the freedoms of Brexit, further divergence from EU standards and rules appears to be likely. That will amplify trade disruption and increase costs for businesses, so can the Minister explain exactly how trade disruptions and barriers will be advantageous to businesses and whether the UK Government will provide any support to ameliorate the cost of these benefits?

Simon Hart: The UK Government have been doing everything they can, including providing substantial investments in Wales under my jurisdiction, to address a number of the challenges that have been presented. As I said before, there is no appetite whatsoever in Welsh businesses and communities to keep trying to go back four or five years and pretend that the referendum result did not happen. It did happen, it happened in Wales and it got a resounding majority. Those businesses are reflecting that position.

Michael Fabricant: Having spent Boxing day and new year’s in Wales, the home of my beloved mother, I met a number of business people in the evening who said that Mark Drakeford’s plans for covid restrictions were nothing but political posturing and that they were damaging their economy. Have they got it wrong?

Simon Hart: My hon. Friend makes a good point. There has been a huge effort on the part of the UK Government and the Welsh Government to maintain public confidence through what has been an incredibly trying period, and a number of people in Wales were happy to give the First Minister the benefit of the doubt. However, the recent raft of announcements, including the confusing examples that I gave the House a moment ago, have got even the most loyal people doubting whether he is still making the right decisions.

Strengthening the Union

Andrea Leadsom: What steps his Department is taking to strengthen the Union.

Simon Hart: Wales is a strong believer in the Union, with three in four voters opting for Unionist parties in the 2021 Senedd elections. The overwhelming majority of people in Wales are passionate about their national identity and proud supporters of the Union. The two things are not exclusive.

Andrea Leadsom: I am sure you would agree, Mr Speaker, that parkruns are fantastic for people’s physical and emotional health. I am sure you enjoyed many of them yourself over the Christmas recess. Does my right hon. Friend agree that the Welsh Government’s  decision to prevent people from taking part in parkruns—not just Welsh citizens but those from the English side taking part in Welsh parkruns—has meant that those people have been significantly detrimentally affected by such a bonkers decision?

Simon Hart: I know that it might not look like it, but I am a veteran of 175 parkruns myself, and I absolutely endorse my right hon. Friend’s position. It seems mystifying and bizarre, when we talk about covid regulations needing to be clear and concise in order to command public confidence, that people in Wales can go to the pub but be fined if they go to their office, that they can watch rugby in a crowded club room but not from the touchline, and that they can have a gym session in their own property but not go and do a parkrun, which is known to have enormous health and mental health benefits.

Baglan Energy Park: Power Supply

Stephen Kinnock: If he will take steps with the Secretary of State for Business, Energy and Industrial Strategy to help ensure ongoing power supply for Baglan energy park until a permanent connection to the grid is secured.

Simon Hart: Contingency planning for Baglan and support for businesses once the official receiver has carried out its duties is the responsibility of the Welsh Government. Along with the Business Secretary, I will continue to work closely with the Welsh Government to support this work.

Stephen Kinnock: In just nine days’ time the supply of power to Baglan energy park will be cut off by the official receiver. Not only will this leave businesses in the area in a completely untenable position but the power supply also feeds the energy park’s waste water pumps, which could have a massive and catastrophic effect on businesses and homes in the area. The UK Government are in a position to work with the official receiver to keep the power supply on. Will the Secretary of State engage with the official receiver and with his colleague, the Business Secretary, to avert potential catastrophe for my constituents and businesses on the Baglan energy park?

Simon Hart: The hon. Gentleman makes a very good point. He and I have been following this saga closely, and the exact position is that the UK Government provided funding indemnity to the official receiver on 24 March 2021 to enable it to carry out its duties as liquidator of the Baglan group. The official receiver has temporarily maintained power to Baglan energy park while developing its plan to disclaim the site.

Transport Connections

Mark Fletcher: What discussions he has had with Cabinet colleagues on improving transport connections between Wales and the rest of the UK.

Simon Hart: Effective and resilient cross-border transport links are vital for levelling up every part of Wales and the rest of the UK, which is why we commissioned Sir Peter Hendy to lead the Union connectivity review. Notably his review recognised the importance of the north and south Wales transport corridors.

Mark Fletcher: The Secretary of State will know that certain roads, such as the M4 and the A55 in north Wales, connect our great Union and are therefore the property of the whole Union. Does he agree that these roads should be treated as pan-UK roads and should be overseen in a similar way to how the European Union oversees the trans-European transport network?

Simon Hart: My hon. Friend makes a very good point. He will have heard me refer to the M4 on many occasions as a vital asset that joins the European mainland to the Republic of Ireland. It is not just a Welsh road; it is of economic significance to the UK and more widely, and it plays a strategic role. That, combined with the slightly mysterious position that the Welsh Government have adopted on a moratorium on road building, leads me to the conclusion that he has reached, which is that there are better ways of maintaining and improving the UK-wide network, including roads that are exclusively in Wales.

Omicron Covid-19 Variant

Stephen Crabb: What recent discussions he has had with the Welsh Government on the impact on Wales of the omicron covid-19 variant.

Simon Hart: The UK Government have worked closely with the Welsh Government throughout the pandemic. We continue to do so in tackling the omicron variant, and Ministers in both Governments are in regular discussions.

Stephen Crabb: With Labour Welsh Government Ministers now introducing fines to try to stop people going to their workplaces, with the crazy decision to prohibit parkruns at this time and with the Welsh hospitality sector effectively under lockdown through new year, does my right hon. Friend share my deep concern that, yet again, Wales faces the most burdensome and most intrusive restrictions in any part of the United Kingdom? Does he agree that these measures are driven more by fear and pessimism than by good science?

Simon Hart: My right hon. Friend and constituency neighbour makes a good point. I might have found myself disagreeing with him if it could be demonstrated that the results of covid controls in Wales are in some way better than the results in the rest of the UK, but they are not. It is absurd that the popular parkrun in his own town of Haverfordwest cannot take place and that people cannot watch rugby from the touchline, but they can cram into a club where they ought not to be. That is nonsense. It is throttling the recovery and it is throttling economic activity.

Transport Connectivity and Infrastructure

Rob Roberts: What recent discussions he has had with the Secretary of State for Transport on connectivity and infrastructure in (a) Wales and (b) between Wales and the rest of the UK.

Simon Hart: The Union connectivity review recommended a multimodal review of the north Wales transport corridor, including the A55 and the north Wales main line. We are considering this and the other recommendations in the review.

Rob Roberts: We received the Union connectivity review five months later than scheduled; will my right hon. Friend indicate when its recommendations will be implemented? Will he throw the weight of his office behind the proposals for the new station in Greenfield, which is vital to connectivity in the region?

Simon Hart: The hon. Member raises a good point. We do not have a precise date as yet, but there is some imminence to it. I ask him to bear in mind the fact that, thanks to interventions and recommendations by the Treasury, other funding models are also available. He should not overlook the work that he can do in future with his local authority in respect of things such as the levelling-up fund and the shared prosperity fund.

Lindsay Hoyle: Before we come to Prime Minister’s questions, I would like to point out that the British Sign Language interpretation of proceedings is available to watch on parliamentlive.tv. BSL interpretation will also be available for the Prime Minister’s statement following PMQs.

Prime Minister

The Prime Minister was asked—

Engagements

Jamie Wallis: If he will list his official engagements for Wednesday 5 January.

Boris Johnson: May I start by wishing you, Mr Speaker, and all Members a happy new year?
Thanks to the heroic efforts of our vaccination programme and people coming forward up and down the country, we managed to ensure that families could still celebrate Christmas. With more than 34 million people now boosted, I want to take this opportunity to say that anybody who has not yet done so should come forward and get boosted now.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.

Jamie Wallis: With Sadiq Khan’s Transport for London in tatters and the Welsh Labour-nationalist coalition in Cardiff Bay an unfunded devolved disaster, does the Prime Minister agree that the great British public do not need to look back at the last UK Labour Government to see what the Opposition’s answer to all our problems is? It is to bang at the doors of the Treasury and demand that the taxpayer bail them out of their own ineptitude and incompetence.

Boris Johnson: It is not just Labour’s record in London or in Wales: every Labour Government in history since the second world war has left office with unemployment higher than when they came in. That is because only Conservatives can be trusted to deliver on the economy and on the people’s priorities, which is why, thanks to the policies that we have pursued, this country now has the fastest economic growth in the G7.

Angela Rayner: A happy new year to you, Mr Speaker, and to the rest of the House.
Over the Christmas break, the world lost a giant in the fight for equality and human rights: the great Desmond Tutu. I offer my condolences to his family and to the people of South Africa.
I thank all the key workers who have kept our essential services running over the festive period. In particular, I thank all the staff and volunteers working at vaccination sites and our amazing NHS staff, who are working incredibly hard in incredibly stretched circumstances. We will come to that after Prime Minister’s questions, with the Prime Minister’s statement. I also thank the formidable Sue Gray, who has been busier than Santa over the festive period.
In October, the Prime Minister said that fears about inflation were “unfounded”, but working people across the country are starting the new year facing rising bills and ballooning prices, so how did he get it so wrong?

Boris Johnson: Of course, I said no such thing, because inflation is always something that we have to be careful about. We are making sure that we protect the people of this country throughout what is unquestionably going to be a difficult period, which is why we have lifted the living wage by record sums and why we make sure that people have cold weather payments, the warm home discount and all the other protections, including the £500 million fund we have put in to help local councils look after people through what will be a difficult period. The most important thing we can do to look after people during this very difficult time is to ensure that we take the balanced and proportionate approach that we are taking to ensure that we are able to keep our country and our society going, which is exactly what we are doing. That is why we have doubled down on the booster programme and why we are sticking with plan B. That is the right approach for the country.

Angela Rayner: Inflation is about to hit 6%. That is the highest rate since the early ‘90s, when the Conservatives had been in power for more than a decade—when they were mired in sleaze, with a divided party and a Prime Minister losing the support of his Back Benchers and governing shambolically, and a Labour party ready to take over and provide Britain with a better future. Familiar stuff, Mr Speaker? The Prime Minister promised that wage rises would offset inflation. They have not and they will not. Millions of British workers now face a further pay cut and the Chancellor is handing them a tax hike. What will the Prime Minister do to get a grip of this?

Boris Johnson: It is great to be here with the right hon. Lady, the shadow Secretary of State for the Future of Work—we know the future job that she has in mind. I wish her well. What we are focused on is delivering jobs for the British people. It is a quite extraordinary thing that there are now record numbers of people in work—420,000 more than there were before the pandemic began. We have youth unemployment at a record low. Never let it be forgotten that when omicron hit this country, what was the instinctive response of Labour Members? [Interruption.] That is right, Mr Speaker. They said that we needed a road map to lock down. If we had listened to them, we would not have anybody working at all.

Angela Rayner: I have heard on the grapevine that there might be a vacancy for Prime Minister soon, so perhaps I should have aspirations.
The Prime Minister pretends that it is not his fault. He blames the global forces. He blames the markets. We are an aspirational party. Perhaps the Prime Minister needs to be more aspirational for this country. The Prime Minister has made political choices that have led us to this place. His Government have failed to invest in long-term energy security. His Government decided to let gas storages collapse. His Government let the energy market run out of control: 27 energy companies have gone bust in the past year, and now household bills are going through the roof, or, as the Money Saving Expert Martin Lewis put it, there will be a “seismic” hit to energy bills. Cannot the Prime Minister see what is happening? Yet again, working families are picking up the tab for his incompetence.

Boris Johnson: The right hon. Lady talks about energy. I think the House would agree that she has a lot more energy than the current Leader of the Opposition. I welcome her point, because what the Government are doing is supporting people throughout the pandemic: 2.2 million people supported with the warm home discount, worth £140 per week, which we introduced; pensioners supported with the £300 winter fuel payments; and there are cold weather payments worth £25 a week for 4 million people up and down the country. That is what we are doing, and that is on top of everything that we are doing to support people on low incomes. We are cutting taxes for those on universal credit and increasing the living wage—£1,000 more for everybody on the living wage. These are record sums. Let me remind the House of the fundamental difference between that Labour party and this Government. Labour Members would have kept us in lockdown in July. When omicron hit, they were calling for further restrictions. [Interruption.] That is right, Mr Speaker. We have been able to keep this country moving, keep the economy growing, and keep the money going into people’s pockets.

Angela Rayner: I will tell you what this Prime Minister is doing, Mr Speaker. He is increasing taxes for the hard-working people of this country. That is what he is doing. That is what he did not promise to do in his manifesto, but that is what he is doing to the people.
“The poorest households spend three times more of their income on household energy bills than the richest households spend”,
and
“VAT on…energy bills…makes gas and electricity…more expensive.”
Those are not my words, but the words of the Prime Minister himself. When energy bills are to be hiked again in April, any decent Government would find a way to help British families. Even Tory Back Benchers have finally accepted Labour’s call for a cut in VAT on energy bills, so will the Prime Minister finally stand up to his Chancellor and do the same?

Boris Johnson: The right hon. Lady obviously did not listen to my previous answer. Let me remind her that the warm home discount already supports 2.2 million people to the tune of £140 a week. Pensioners are supported with £300 through the winter fuel payment, and there are cold weather payments for 4 million people. The Opposition now have the effrontery, having  campaigned to remain in the European Union—and she did too, did she not? [Hon. Members: “Yes!”] Oh yes, she campaigned to remain in the EU. [Interruption.] Oh yes she did—and they now have the barefaced cheek to come to this House of Commons and say that they want to cut VAT on fuel—[Interruption]—and so did the shadow Foreign Secretary—when everyone knows full well that that would be absolutely impossible if we were to do what Labour would do, go back into the EU and remain aligned with the EU single market. That is the objective of the Labour party. It cannot be trusted on Brexit, and it cannot be trusted on the economy.

Angela Rayner: Prime Minister, how’s it going? Are you okay?
The Prime Minister and his Chancellor have presided over economic mismanagement, low growth, and neglect of our public services, and what is their solution to fix that? Whacking more taxes on to working people. When the tax rises are combined with soaring energy prices, the average family faces a £1,200 hit. This is an iceberg, right ahead of us, so will the Prime Minister finally stop and change course—[Interruption.]

Lindsay Hoyle: Order. We did not start the new year in the way we left the last one. I was given an assurance that we would try to calm down, so if we could, it would be helpful.

Angela Rayner: Given that hit of £1,200, will the Prime Minister finally stop and change course, or will he plough on towards what will be a disaster for thousands of families?

Boris Johnson: As a direct result of what we have already done on universal credit, a single mother with two kids is £1,200 better off. As a result of what we have done with the living wage—introduced by this Conservative Government, never let it be forgotten—everyone on that living wage has seen another £1,000 of income every year. But that is not the point. We will continue to look after people throughout the pandemic, but the fundamental point is that because of the steps that the Government have taken—because of the tough decisions we have taken, and because of our balanced and proportionate approach to covid—we have been able to keep this country open and keep our economy moving. We have kept our economy more open than any comparable economy in Europe, and the Opposition know it, although they opposed it on every step of the way. That is why people are seeing increases in employment, and increases in their pay packets as well.

Angela Rayner: The Prime Minister always gives with one hand and takes away more with the other. Under this Prime Minister, the country is worse off. Prices of everyday goods are soaring out of control. Hard-earned savings will be hit, and the wages of working people will not go as far. Inflation is not an economic theory; it has serious consequences for people’s lives. We need serious solutions to stop people falling into poverty or debt, but instead we have this Prime Minister and his incompetent leadership.
Every time we are faced with a challenge, he denies that there is a problem. He tries to laugh it off. He looks for someone else to blame. May I suggest to the Prime Minister that this is not about brushing his hair, but  about brushing up his act? Does he accept that his incompetence is taking our country backwards and costing our country dear?

Boris Johnson: No—what I would tell the House and the country is that Labour incompetence has ruined this country time and time again. There has never been a Labour Government that have left office with unemployment lower than when they came in. And what is the right hon. Lady’s answer to the energy crisis? It is to nationalise our energy.
It was in fact Labour’s failure to invest in supply over a decade or more that reduced our ability to have cheaper, cleaner energy. We are rectifying that. We are taking the tough decisions that this country needs for the long term. It is because we have taken those tough decisions—because we have taken the balanced and proportionate approach we have that they opposed every step of the way—that we have youth unemployment at a record low. We have 420,000 more people in jobs now than there were before the pandemic began, and we have not only the most open society and economy in Europe but the fast economic growth in the G7. That is completely contrary to what the right hon. Lady has just said, and it is because of our stable, balanced and proportionate approach. Never let it be forgotten that when omicron presented itself, what did they vote for? They reached for the lever of more restrictions. They said lockdown; we said boosters. They carp from the sidelines; we get on with the job.

Hon. Members:: More!

Lindsay Hoyle: You want more? You won’t get more at this rate, will you? Mr Penrose has been waiting patiently. Why do you not want to hear him? I do.

John Penrose: The biggest factor driving up our fuel bills and cost of living is the sky-rocketing international price of gas, which is currently dancing to a tune set in Moscow. Does the Prime Minister agree that Labour’s short-term proposals to shift the burden from bill payers to taxpayers will not address the fundamental underlying problem at all, and that the crisis demands structural reforms to the energy price cap, rather than just resetting it to later this year, as well as energy self-sufficiency to uncouple us from Russian gas?

Boris Johnson: Yes. I thank my hon. Friend, who is completely right. That is why this Government are taking the tough decision to invest in the long-term future of our energy supply, investing in massively increasing our supply of renewables but nuclear as well. That is the right way forward for this country. It was Labour, of course, who completely failed to take those decisions, with the result that nuclear, in particular, fell away dramatically. It is absolutely farcical that Labour’s answer today to the energy price rises that my hon. Friend correctly diagnoses is to nationalise our energy—[Interruption.] Yes it is. Is it? Well, maybe they have changed their minds now, but it was. Maybe they have had second thoughts. But their answer was to nationalise our energy sector and to send bills even higher, and that is not the way forward.

Ian Blackford: I wish you, Mr Speaker, colleagues and all staff a guid new year.
Over the last few weeks, serious warnings have grown over the Tory cost of living crisis, which will hit the majority of families over the coming months. New research from the Resolution Foundation has found that, on average, families will be £1,200 worse off from April as a result of Tory cuts, tax hikes and soaring energy bills. For members of the Tory Government, £1,200 might not seem very much. For the Foreign Secretary it is just another taxpayer-funded lunch in Mayfair. For the Prime Minister it is just a roll of fancy wallpaper for his taxpayer-funded flat. But for the vast majority of families, losing £1,200 a year will be catastrophic. For some it will mean that they cannot afford to pay their rent and bills, to heat their homes or to put food on the table. So will the Prime Minister apologise for leaving millions of families worse off, and will he commit to an emergency financial package to reverse his Tory cost of living crisis?

Boris Johnson: I find that criticism hard to take from the humble crofter, if I may say so—with whom, I stress, I normally have very good relations off the pitch. What we are doing is helping families up and down the country with the taper rate, ensuring that a single mother with two kids gets £1,200 more on universal credit, £1,000 more as a result of the increase to the living wage. The crucial thing I am trying to get over this afternoon is that we, unlike virtually any other European economy, have been able to keep going and keep people in work. We now have more people in work than there were before the pandemic began. That is because of the balanced and proportionate approach we have taken, and the right hon. Gentleman’s support would be welcome and deserved.

Ian Blackford: My goodness, Mr Speaker—we are talking about a Tory cost of living crisis. So much for a new year, a new start: it is the same nonsense from this failing Prime Minister. We have had the year of Tory sleaze, but now we have the year of Tory squeeze for family budgets. Economists have warned that UK living standards will worsen in 2022, with the poorest households hit hardest by Tory cuts, tax hikes and soaring inflation driven by his Government’s policy. Under this Prime Minister, the UK already has the worst levels of poverty and inequality in north-west Europe. Now the Tories are making millions of families poorer. In Scotland, the SNP Government are mitigating this Tory poverty crisis by doubling the Scottish child payment to £20 per week. I ask the Prime Minister this: will he match the Scottish Government and introduce a £20 child payment across the UK, or will the Tories push hundreds of thousands of children into poverty as a direct result of his policies?

Boris Johnson: The right hon. Gentleman is talking, I am afraid, total nonsense. This Government are absolutely determined, as I have said throughout this pandemic, to look after particularly the poorest and the neediest. That is what the Chancellor did: all his packages were extremely progressive in their effect. When I came in to office, we ensured that we uprated the local housing allowance, because I understand the importance of that allowance for families on low incomes. We are supporting vulnerable renters. That is why we are putting money into local authorities to help families up and down the country who are facing tough times. The right hon. Gentleman’s fundamental point is wrong. He is just wrong about what is happening in this country.  If we look at the statistics, we see that economic inequality is down in this country. Income inequality is down and poverty is down, and I will tell you why—because we get people in to work. We get people in to jobs. That is our answer.

Bob Neill: The London Borough of Bromley has achieved the fastest and most significant improvement in children’s services of any local authority in England. Much of the credit is due to its exceptional chief executive, Mr Ade Adetosoye. Will my right hon. Friend join me in congratulating Mr Adetosoye on his appointment as a Commander of the British Empire in the new year honours list, and congratulate the Conservative majority on the council on delivering the only debt-free council in London?

Boris Johnson: I cannot believe that Hillingdon is not included in that list, but it is no surprise to me that Bromley runs such a tight ship; I have been familiar with Bromley over many years and my hon. Friend and I have campaigned there together. I commend particularly Ade Adetosoye CBE on his achievement.

Lindsay Hoyle: I call Ed Balls—I mean Ed Davey.

Edward Davey: Happy new year, Mr Speaker! I am sure the Prime Minister will want to join me and my Liberal Democrat colleagues in welcoming my hon. Friend the new Member for North Shropshire (Helen Morgan).
People’s already high heating bills are about to jump by more than 50%, with average energy bills rising by nearly £700 a year. Gas price rises will push millions more families into fuel poverty, when we know many are already afraid even to open their heating bills. Does the Prime Minister accept that he could be doing much more than he is to prevent millions of people from going hungry and cold this year while he remains—for now at least—in the warmth and comfort of No. 10?

Boris Johnson: Of course I welcome the hon. Member for North Shropshire (Helen Morgan) to her place; but as for the rest of what the right hon. Gentleman had to say, I think balls was the word—you were right first time, Mr Speaker. Your word, Mr Speaker, not mine. I simply advise the House to go back over what I have just said about all the protections that we are putting in place—the winter fuel payments, the warm home allowance, what we are doing to support pensioners, the £650 million we are putting in to support local councils. He talks about long-term energy solutions; is this the same Ed Balls/Davey who was an Energy Minister?

Jeremy Hunt: Hospitalisations in London have peaked, so the Prime Minister was absolutely right to hold his nerve on new restrictions in the last few weeks, but does he agree that the NHS faces not just omicron staffing absences, but permanent and dangerous staffing shortfalls in nearly every specialty? Will he end the cycle whereby those shortfalls continually threaten not just patient care, but sometimes even our freedoms, by overhauling workforce planning by backing Baroness Cumberlege’s amendment to the Health and Care Bill in the House of Lords, having a word with his neighbour in Downing Street and making 2022 the year we finally solve this problem?

Boris Johnson: I think my right hon. Friend’s amendment may have re-emerged in another place, and I thank him. He knows a great deal about the issue and I understand what he is trying to do. We are taking, for the time being, a different approach, and that is having record numbers of people working in our NHS—more than ever before, with 5,000 more doctors this year than last year, and 10,000 more nurses. That is thanks to the investment that this House voted through, and that that Opposition, unbelievably, opposed.

Liz Saville-Roberts: Diolch yn fawr iawn, Lefarydd. My mother, Dr Nancy Saville, was diagnosed with dementia just before Christmas. She had a stroke a year ago. I was called to sit with her in hospital on Monday because of a covid staff shortage but I fear that, like many of our constituents in similar circumstances, we are likely to be separated indefinitely when she is moved into an EMI, or elderly mentally infirm, nursing home. John’s Campaign has successfully campaigned in every UK nation that people disabled by dementia have a special need for person-centred care—under the Equality Act 2010—but in reality there remain many care homes and hospitals where even the most minimal visits can be denied, leading to isolation and separation, which cause irreversible damage to wellbeing. Does he agree that the human rights of disabled people, sick people and the elderly are not fair-weather luxuries, and that everyone with dementia, wherever they live, has the right to family life?

Boris Johnson: May I extend my deepest sympathies to the right hon. Lady? I am sure the whole House, and everybody who has listened, will have shared her feelings and will simply wish to extend their condolences in view of her mother’s condition. I know how her feelings must be exacerbated by the difficulties that so many people up and down the country are facing because of the restrictions that we are having to put on care homes, and I sympathise deeply. We do have to try to strike a balance and to keep home care residents safe and to do what we can to prevent the epidemic from taking hold in care homes. We continue to allow three nominated visitors to care homes, and there should be no limit to the duration of those visits. I understand the particular distress and anxiety that the right hon. Lady’s circumstances are causing. May I suggest that she has a meeting, as soon as it can be arranged, with my right hon. Friend the Secretary of State for Health and Social Care?

Dr Caroline Johnson: Many of my constituents have contacted me with their concerns about rising utility bills and the high cost of fuel for their cars. People in rural constituencies such as Sleaford and North Hykeham are particularly affected by this, because rural areas are colder in the winter, many homes are not on the gas grid, rural people are much more reliant on their cars, and public services are very much further from home. I therefore ask my right hon. Friend what more he can do, particularly in rural communities, to ensure that my constituents have a reliable and affordable source of energy and fuel.

Boris Johnson: My hon. Friend has drawn attention to a very important consideration as we try to abate the increases in the costs of gas and of energy. For people in rural constituencies such as her own, it will be important  that we have frozen fuel duty for the 12th year in a row, that the energy price cap itself remains in place, and that we are doing everything we can to help people with the energy efficiency of their homes. We are also taking all the other measures that I have explained to the House, but the most important thing that we can do to help people in her constituency and across the country is to have sustainable, clean, cheaper forms of energy, and that is what this Government are investing in now. We are taking the tough decisions necessary.

Andy McDonald: Statutory sick pay is worth £3 a week less in real terms compared with the start of the pandemic, and millions of workers are being forced to choose between isolating and putting food on their table. In Germany, 100% of workers’ salaries is covered by sick pay, whereas in the UK, the figure is a pitiful 19%. If the Prime Minister thought earning £250,000 from his second job was “chicken feed”, how on earth does he expect working people to survive on £96 a week when they get sick? If he agrees that many lives and livelihoods could be saved by increasing sick pay, will he commit here and now to raising it to the level of the real living wage?

Boris Johnson: Of course, as the hon. Gentleman knows, one of the first things we did when covid struck was make sure that statutory sick pay was payable from day one, so it is up to 75% more generous if a person needs to self-isolate. The current statutory sick pay is, of course, a minimum—more than half of employees get contractual sick pay from their employer—but the most important thing we can do is ensure that we continue to keep people in work and in higher-wage, higher-skilled jobs, and that is what we are doing.

Richard Holden: Later today, I will present a Bill to extend auto-enrolment in pensions to everyone aged over 18, including part-time workers. That would see trillions of pounds in long-term savings levelling up the retirements of workers, especially women, in the towns and villages of North West Durham and across the country. As the Prime Minister seeks to build back better from the global pandemic, will he throw his weight behind these important changes that would benefit workers across our United Kingdom?

Boris Johnson: Over 10 million people have been automatically enrolled into workplace pensions already: that has put another £28.4 billion into pensions, so it is a great success. I am sure that my right hon. Friend the Secretary of State for Work and Pensions will be listening closely to what my hon. Friend the Member for North West Durham (Mr Holden) has said.

Neil Coyle: We know the Prime Minister is happiest at Peppa Pig World, but in the real world, people in Southwark face rising energy bills, rising shopping costs, and a new Tory tax. Leaseholders also face huge costs for fire safety works post Grenfell required by his Government, so will the Prime Minister try to keep just one promise in 2022 and protect all leaseholders from those costs, and will he back the cross-party campaign to make those works exempt from VAT in order to add £1 billion to the building safety fund?

Boris Johnson: Actually, in my experience, what most Londoners want is protection from high-taxing Labour councils, but what they will also get is that we will deliver on our pledge to protect residents from serious fire safety risks, and also to manage the injustice that leaseholders face. The House can look forward to being updated shortly.

Simon Fell: The very best of British science has been on display over the past 18 months, being responsible for the design and manufacture of many of the vaccines that have kept us safe during this pandemic. The focus of the Department for Business, Energy and Industrial Strategy on making the UK the best place to practise life sciences and to innovate is therefore welcome, as is its cluster strategy. With that in mind, will my right hon. Friend back Ulverston as the pioneer place for the cluster strategy to be rolled out, enabling high-wage and high-growth jobs to be based in my constituency?

Boris Johnson: Yes, because we are going to get on with our job of levelling up across the whole of the UK, making sure that every part of this United Kingdom shares in our ambition to be a science superpower, which is what we are and what we will be. Ulverston has a rich history in the life sciences, and we are in regular consultation—not just officials in BEIS—with my hon. Friend and with officials in the sector to see what more we can do to further investment in the area.

Navendu Mishra: A number of people in my constituency have contacted me about the lack of NHS dentists and the prohibitive cost of private dental treatment. Just a few weeks ago one constituent contacted me and said:
“I work full-time as a mental health support worker, I am on minimum wage and can barely afford the reduced NHS dental costs. In the past three months I have had to go to the emergency dentist three times for the same tooth, with the infection initially getting so bad I collapsed at work. The problem is not being dealt with because you need a second appointment which isn’t classed as an emergency and thus needs your ‘regular’ dentist.”
Does the Prime Minister agree that such stories amount to nothing less than a national scandal? What steps will he take to reduce the backlog of NHS dental appointments, and will he commit to increasing the number of NHS dentists across England?

Boris Johnson: I thank the hon. Gentleman, but that goes to show why it is so important to keep this country going and to keep people going to the dentist. One of the troubles we have had during lockdown is that people have not been going—there are 10 million unfilled fillings, I am told. That is why we are putting record investment into dentistry and into the NHS—£36 billion. [Interruption.] For all their caterwauling, the Opposition opposed that investment.

Andrew Selous: Can we remedy the current flawed budgetary process whereby it is possible to build 14,000 new homes in my constituency without any commensurate increase in general practice capacity? As we house the next generation, we must make sure that the infrastructure goes in at the same time.

Boris Johnson: Yes. I thank my hon. Friend, and he is completely right: we cannot build new homes without putting in the infrastructure to go with it. That is why we have a colossal programme of infrastructure investment—the biggest for a century. That is why we are not only investing in more GPs but investing another £250 million into more GP practices—[Interruption.] The Opposition are cachinnating away as usual. They voted against that spending.

Sammy Wilson: Millions across the United Kingdom are facing great difficulty with their energy bills. Some 30% of those bills is actually driven by the Government, in the form of VAT and various green levies. Now that we have left the EU, can we use our Brexit freedom to at least review the VAT on those bills? Given that some of the green levies are spent on madcap ideas, such as subsidising Drax B power station to the tune of £1 billion a year and bringing in wood chips from America when there is fuel down the road, can we have a review of the green levies as well so that people are not faced with the burden of unsustainable fuel bills?

Boris Johnson: I thank the right hon. Gentleman. I can tell him that we are addressing the issue of fuel. We should not forget that the cap is still in place, and all the mitigations that I have talked about are there, but we are determined to do what we can to help people through this pandemic. What we must do above all is make sure this country has a better supply of cheap and affordable energy, which the Opposition hopelessly refused to institute during their 13 wasted years in government.

Saqib Bhatti: Last week my constituent Edna Constable turned 100 years old. She lived through the second world war, and now she is living through a pandemic. Will my right hon. Friend join me in wishing her a belated happy birthday, and will he pay tribute not just to the care workers taking care of her in Fountains care home but to care workers across my constituency and across the rest of the country, who go over and above to protect the most vulnerable in our society?

Boris Johnson: I thank my hon. Friend very much. I want to thank all the staff at Fountains care home for everything they have been doing to look after people throughout the pandemic. In particular, I want to join my hon. Friend in wishing the centenarian Edna a very happy 100th birthday.

Charlotte Nichols: Groundbreaking research published yesterday in the Journal of Psychopharmacology, from King’s College London in partnership with Compass Pathways, has now established that psilocybin can be safely administered and may have significant therapeutic benefit in treatment-resistant depression and post-traumatic stress disorder. As someone who knows first-hand how debilitating PTSD is, as well as hearing from many constituents who have developed the condition as a result of sexual assault or their experience serving in our armed forces, I ask the Prime Minister to commit today to a review of the regulatory regime that would allow further and more rapid research in this vital area of mental health support, for which current treatment options are sorely lacking.

Boris Johnson: I thank the hon. Lady for her question, and I appreciate the personal experience that makes her interested in psilocybin. I am aware of interest in the area and it has been talked about several times. I propose that she has a meeting, as soon as it can be arranged, with the relevant Minister in the Department of Health and Social Care.

Edward Leigh: Apparently the Government are thinking of relaxing visa controls for India in order to get a free trade deal. While a free trade deal is valuable in itself, we should not be held to ransom. Does the Prime Minister agree that our new working-class voters who voted for Brexit did not vote to replace immigration from Europe with more immigration from the rest of the world, any more than that when they were told that we would take back control, we would lose control of the channel? Will he convince us that he is determined to connect to our supporters and control immigration?

Boris Johnson: Yes. I do not recognise the account that my right hon. Friend has given: we do not do free trade deals on that basis. Indeed, I can tell him that since we took back control, net immigration has gone down—[Interruption.] That is all the Opposition want—their answer is, everywhere and always, uncontrolled immigration. That is their approach to the economy, and it is not the right way forward. That is why our Nationality and Borders Bill, currently in the House of Lords, is so important—it will enable us to take back control of our borders properly and to tackle illegal immigration. What would be good would be to hear some support from the Labour Benches.

Kevin Brennan: Five years ago, when the Prime Minister was Foreign Secretary, my constituent Luke Symons was taken captive by the Houthis in Yemen. Fortunately, the Prime Minister has  a former Foreign Secretary sat next to him and another behind him, both of whom served in the last five years. Luke Symons is still in captivity in Sanaa, even though other nations—including the Americans—have managed to get their citizens released. Will the Prime Minister pledge that his Government will do everything they can to get Luke released from captivity in Yemen and arrange for the Foreign Secretary to meet my constituent, Mr Robert Cummings, who is Luke’s grandfather, to discuss how to go about doing that?

Boris Johnson: I thank the hon. Gentleman for raising this case again. I remember it, and it is very sad. I know that our staff in the Foreign, Commonwealth and Development Office work hard to try to release people from the positions they find themselves in around the world. Luke Symons is no exception, but I will certainly make sure that the hon. Gentleman has a meeting with the relevant Minister to report on the progress we are making.

Angela Rayner: On a point of order, Mr Speaker. Nobody wants to mislead the House, and I am sure that the Prime Minister would not wish to do so. I quoted the Prime Minister saying that fears about inflation were “unfounded”, and he said that he did not say that. However, the Sky journalist Beth Rigby has now put the clip on social media. I wonder whether the Prime Minister would like to correct the record.

Lindsay Hoyle: If the Prime Minister wants to come back, he can do. If he does not, what I would say is that it is not a point of order.

Boris Johnson: rose—

Lindsay Hoyle: Sorry, Prime Minister. I am not going to extend the debate. It is a point of clarification, and that has been achieved.

Covid-19 Update

Boris Johnson: With permission, Mr Speaker, I will make a statement on the omicron variant and our measures to contain this virus, fortify our NHS and keep our country open.
First, I am sure that the whole House will join me in paying tribute to everyone working in our NHS and social care for their extraordinary efforts in the teeth of yet another wave of this pandemic, and for all that they have done, together with thousands of volunteers, to get Britain boosted. Since we began the Get Boosted Now campaign just over three weeks ago, we have delivered 10 million extra boosters across the UK; we have doubled the rate of vaccination from 450,000 doses a day to a peak of more than 900,000; we have matched the NHS’s previous record day, then beaten it again and again; and we have met our target of offering a booster to every eligible adult in England a whole month early.
As a result, we have a higher level of booster protection than all our European neighbours, with more than 34 million boosters having been administered across the UK, reaching in England more than 90% of the over-70s and 86% of the over-50s. Together with the evidence that omicron causes less severe disease than previous variants, and the way in which the public have conscientiously changed their behaviour in response to plan B, that level of protection means that we are in a very different position than we were during previous waves.
I know that some hon. Members may therefore ask whether that means we can now do away with measures altogether, but I am sorry to report that hospital admissions are rising rapidly—doubling around every nine days—and there are more than 15,000 covid patients in hospital in England alone. We are experiencing the fastest growth in covid cases that we have ever known; over 218,000 cases were reported yesterday, although that included some delayed reporting. Potentially of greatest concern, case rates are now rapidly rising among the older and more vulnerable—doubling every week among those over 60, with the obvious risk that that will continue to increase the pressures on our NHS.
In response to the latest data, the Cabinet agreed this morning that we should stick with plan B for another three weeks, with a further review before the regulations expire on 26 January. People in England should carry on working from home whenever they can, wear face coverings on public transport and in most indoor public places, and take a test before going to high-risk venues or meeting the elderly or vulnerable. All of these measures are helping to take the edge off the omicron wave, to slow the spread of infection, to manage the immediate pressures on our NHS and to buy time for the boosters to take effect. Those in Scotland, Wales and Northern Ireland should, of course, continue to follow the rules where they live.
Faced with those pressures on our NHS, I know that some Members may ask the opposite question: whether we should go even further and move towards a full lockdown. But lockdowns are not cost-free; they impose a devastating toll on our physical and mental wellbeing, on our businesses, jobs and livelihoods and, worst of all, on the life chances of our children, so the Government do not believe that we need to shut down our country again.
Instead, we are taking a balanced approach, using the protection of the boosters and the plan B measures to reduce the spread of the virus, while acting to strengthen our NHS, protect critical national services and keep our supply chains open. We are building on-site Nightingale hospitals and creating 2,500 virtual beds to increase NHS capacity. We have bought more antivirals per person than anywhere else in Europe, and we are working to identify those trusts that are most likely to need military support, so that that can be prepared now.
From 10 January, we will provide 100,000 critical workers in England with free lateral flow tests for every working day to help to keep essential services running. That includes those who work on critical national infrastructure, national security, transport, and food distribution and processing. Those tests are separate—and in addition—from those already allocated to our public services, such as in education, where we have delivered 31 million testing kits to schools and colleges for the start of the new term.
We have the biggest testing programme in Europe, registering almost twice as many tests as France, and four times as many as Germany. Last month alone, we distributed 300 million lateral flow devices, enabling millions of people to get tested and keep their loved ones, friends and colleagues safe in the run-up to Christmas. Thanks to the sheer size of the omicron wave, we still need to take steps to ensure that our testing capacity reaches those who need it most, so we will be suspending the need to do a PCR test to confirm the result of a positive lateral flow test. From next Tuesday in England, if someone tests positive on a lateral flow device, they should just record that result on gov.uk and begin self-isolating.
Our balanced approach also means that where specific measures are no longer serving their purpose, they will be dropped. When the omicron variant was first identified, we rightly introduced travel restrictions to slow its arrival in our country, but now omicron is so prevalent, these measures are having a limited impact on the growth in cases while continuing to pose significant costs for our travel industry. I can announce that in England, from 4 am on Friday, we will be scrapping the pre-departure test, which discourages many from travelling for fear of being trapped overseas and incurring significant extra expense. We will also be lifting the requirement to self-isolate on arrival until receipt of a negative PCR, returning instead to the system we had in October last year, where those arriving in England will need to take a lateral flow test no later than the end of day 2 and, if positive, a further PCR test to help us to identify any new variants at the border.
All these measures are balanced and proportionate ways of ensuring we can live with covid without letting our guard down, and we can only do this thanks to the biggest and fastest booster campaign in Europe. Yet there are still almost 9 million people eligible who have not had their booster. As many as 90% of those in intensive care with covid have not had their booster and over 60% of those in intensive care with covid have not had any vaccination at all.
There are 2 million slots available in the next week alone, so I urge hon. Members on both sides of the House to do everything possible to encourage their constituents to get boosted now. This is the very best  way to save lives, reduce pressure on our NHS and keep our country open. I commend this statement to the House.

Angela Rayner: I thank the Prime Minister for advance sight of his statement. I wholeheartedly back him in asking people to come forward to get their jabs and booster jabs. It is of course right that plan B measures must stay in place during this wave of the pandemic. It was the Labour party that made sure that the Government had the votes to pass those measures in the House. If not for Labour’s actions, the NHS would be facing even greater pressure, and the likelihood is that we would have needed much harsher restrictions. My message to the Prime Minister is that, despite the people sitting behind him, and those eyeing up his job alongside him, Labour will always act in the national interest and put public health before party politics.
The Prime Minister said that we have to ride out the omicron wave, but the NHS is not surfing; it is struggling to stay afloat. We have seen several hospital trusts declare critical incidents, which means that they cannot provide services for cancer and heart disease patients. In my home of Greater Manchester, non-urgent surgery is being halted. I thank those trusts that have come forward and been up front about the reality that they are facing, and I thank our NHS staff who are going above and beyond, once again, to get us through this period.
Is it not time for the Prime Minister to be straight with people and give a frank assessment of the state of our NHS? He mentioned the use of the Army, but how many trusts have declared a critical incident and what does he plan to do about that? People in the north-east are being told to call a cab or phone a friend if they are suffering a suspected heart attack or stroke. That is shocking.
Even before omicron hit, however, thousands of suspected heart attack or stroke victims in England were forced to wait more than an hour and 40 minutes for their ambulance. Is it not true that our health service went into this wave of infections with the largest waiting lists on record, the longest waiting times on record and major staff shortages? After a decade of Tory mismanagement, the NHS was not prepared for covid and did not have the spare capacity to cope with omicron. It is not just that the Conservatives did not fix the roof when the sun was shining; they dismantled the roof and removed the floorboards.
Getting testing right remains the best way to avoid further restrictions. It is welcome that the Government are requiring daily testing to protect critical national infrastructure, but that will not begin until next week. Our essential services are buckling under the pressure now. Doctors, nurses, carers, teachers and pupils cannot get the tests they need now to do two tests a week. Emergency workers are reportedly stuck in isolation because they cannot get their hands on a test. So why did the Health Secretary claim on 13 December that there is “no shortage” of actual tests? Why was the Government’s delivery service allowed to go on holiday over Christmas with no contingency plan in place? The Government have been asleep at the wheel, and the result is total shambles. I am sure the Prime Minister will join me in thanking the Welsh Labour Government  for sharing 4 million tests with England. Thank goodness that they had the foresight to plan ahead and secure enough tests for this period.
In April 2020, the Government published a strategy to scale up the covid-19 testing programme. They promised to work with the UK’s world-leading diagnostics companies to build a British diagnostics industry at scale, yet two years on, this has never materialised. How much taxpayers’ money was spent on this programme and why, Prime Minister, two years into the pandemic, are we still reliant on tests from China, instead of building the capacity to make the tests here in Britain?

Boris Johnson: That is rubbish.

Angela Rayner: The Prime Minister can chunter away, but he will have his opportunity in a minute.
People will be returning to work this week, but the Government are refusing to guarantee all workers sufficient sick pay, leaving working people with the choice of going to work to feed their families or staying at home to protect public health. Will the Prime Minister finally raise sick pay so that people are no longer faced with an impossible choice of doing the right thing or feeding their family?
In some of the poorest countries in the world, less than 10% of the population is vaccinated. This is shameful. We know we can do more to assist the international vaccine effort, and what are the Government doing about that? If we are going to break this endless cycle of new variants, we have to vaccinate the world. This is not just a question of doing the right thing for others; it is in our national interest, too.
Finally, there are Conservative Members sitting behind the Prime Minister who have spent recent weeks attacking hard-working public servants. Is it not time that the Prime Minister stood by our experts, professionals and officials, who are doing all they can to protect public health? If he was happy to defend Dominic Cummings, the former Health Secretary and Owen Paterson, why will he not defend those public servants who are actually doing the right thing?

Boris Johnson: When it comes to attacking hard-working public servants, why does the right hon. Lady continually attack our testing operation, for instance, which has done a fantastic job throughout this pandemic?
There were several things in that intervention that were simply completely the inverse of the truth. We are not cutting cancer services; we have invested more in oncologists. We have 4% more oncologists this year than last year and 5% more radiologists. She asks about ambulances, and yes, of course everybody should get an ambulance who needs one. That is why we have invested £55 million more in the ambulance service. There are 500 more ambulance staff now than there were in 2018, 10,000 more nurses and 5,000 more doctors than there were last year. That is because of the investment that we are making—£36 billion—every penny piece of which the Opposition voted against.
To come to testing, it really is extraordinary that the Opposition run down this country and its achievements time and again. We are doing 520,000 PCR tests every day and 1.25 million tests every day. We have done 400 million tests in the country—more tests per head in this country than in any other European country. The right hon. Lady talks about schools. We delivered 31 million  tests to schools in the run-up to Christmas. She made an incredible point: she said that this country did not have its own diagnostics capabilities. She does not know what this country is doing—unbelievable! Let me tell the Opposition Front Bench that in this country we have the largest lateral flow test manufacturing facility—in this country! They should go and visit it. They do not know what they are talking about. It is in Nottingham, and we buy them all. By the way, the right hon. Lady talks about the testing regime, but it is thanks to the efficiency of our testing regime that the Leader of the Opposition, whom we wish well, is not currently in his place. It is thanks to the testing regime that the right hon. Lady is able to speak from the Dispatch Box at all, so she might as well support it. It has done an incredible job.
Two final points. The Opposition voted continually against our funding for the NHS that has made this possible, and let us be in no doubt that they would have kept this country in lockdown from 19 July. They were opposed to our measures. Members on their Front Bench chorused that we needed tougher restrictions as we came into omicron and said that we needed a road map for lockdown. That was their approach, and what would have been the result? Another body blow to the UK economy and to our ability to fund our NHS. That is the fundamental difference between this Government and that Opposition: we have a plan for getting through covid; all they do is carp from the sidelines.

Theresa May: I commend my right hon. Friend for resisting calls from the Labour party and others for more restrictions before Christmas, and also for the changes that he has announced today. Omicron is less serious than previous variants. We will see new variants appear in future, and the likelihood is that they will continue to be less serious. It is not in the national interest to partially or wholly shut down sectors of our economy every time we see a new variant. Will my right hon. Friend take this opportunity to inform the House whether and how the Government will change their approach when new variants arise?

Boris Johnson: My right hon. Friend is totally right in what she says. We simply cannot go on, as a country and as a society, reaching endlessly for lockdown, which is the Opposition’s instinct, no matter what the cost and no matter what damage it does. We have to remain cautious, and I am afraid that I cannot tell the House that we can rule out absolutely everything to protect the public, but as I said to the country last night, I am confident—that is why I am repeating it today—that we can get through this wave of omicron with the balanced and proportionate approach that we are taking. I am glad to have my right hon. Friend’s support. For the future, we need the polyvalent vaccines that can deal with any type of covid mutation and variant, as well as the therapeutics, and that is what we are investing in as well. And as the right hon. Member for Ashton-under-Lyne (Angela Rayner) should know, we are investing more per head than any other country in Europe.

Ian Blackford: I thank the Prime Minister for giving me advance sight  of his statement. I hope that he had a safe and restful   break, and that his festive parties were perhaps more sensible and legal then they were in 2020. He is right to say that the booster programme is absolutely crucial. Getting a booster reduces the chance of getting covid, protects against serious illness and helps to reduce pressure on our NHS, but his central approach of riding out the omicron wave is a reckless gamble that risks lives and risks the NHS. Let us talk about what “riding it out” means. It means allowing the omicron variant to rip through communities. It means avoidable deaths, long covid and stretching the NHS to breaking point. That is why the correct approach is to show continued caution and to slow transmission. That is the proactive, sensible and cautious approach being taken by the Scottish Government and the other devolved nations. It is the UK Government who are once again out of step. Recklessness has been the hallmark of this Prime Minister. He has acknowledged that parts of the NHS will feel temporarily overwhelmed, but hospitals in England are already overwhelmed, with heart attack patients being told to make their own way to hospitals. How appalling, Prime Minister! What a failure!
Will the Prime Minister now listen to his chief scientific adviser and chief medical officer, who acknowledge that the disease is moving up the age ranges and that we can expect increased pressure on hospitals? Will he act to slow the rate of transmission? The reality is that he has no choice but to ride it out, because he is too weak to get a more cautious and sensible approach past his divided Cabinet and mutinous Back Benchers. He knows he does not carry the moral authority to protect the public when he broke previous restrictions himself.
The public are faced with a Prime Minister who does not have the political leadership or the authority to act to keep these islands safe, so will he finally acknowledge that he is riding it out and risking lives and the NHS because his Back Benchers are now calling the shots?

Boris Johnson: I think the right hon. Gentleman should take back what he said.

Ian Blackford: You don’t like the truth.

Boris Johnson: The right hon. Gentleman should be respectful of the tradition of this House that you  do not accuse people of things they have not done.  It is totally untrue. This Government have taken—[Interruption.]

Lindsay Hoyle: Order. Mr Blackford, please. We just want to calm it down. This is a new year. Let us start  off as we mean to go on, and not in the way we are behaving.

Boris Johnson: While the Scottish National party continues to do serious economic damage in the way they do, we will continue to get on with a balanced and proportionate—

Ian Blackford: You’re damaging us.

Lindsay Hoyle: Order. Either we behave—[Interruption.] I do not need any advice from anybody over there. That is the last thing we need. We just need to calm it down. This is a very important debate, and the country is watching. They want to hear what is going on. Catcalling across the Chamber is not good for anybody.

Boris Johnson: I am grateful, Mr Speaker. I think what we need to do is get on together with a plan that is both balanced and proportionate and that does a huge amount to protect the public. It is the right way forward in dealing with omicron.

Ian Blackford: It is out of step.

Boris Johnson: The right hon. Gentleman says the UK Government are out of step with what the Scottish nationalist party wants, but we overwhelmingly do the same thing at the same time. There is far more that unites us than divides us. You may not like it, but that is the reality.
I take exception to the language used by the right hon. Gentleman. When it comes to the Union, he should reflect on the great success achieved by UK scientists working together on vaccines, on the formidable effort of test and trace operations I have seen in Glasgow and elsewhere, on the heroic actions of the British Army in ferrying vulnerable people who needed urgent covid treatment from remote Scottish islands to places where they could receive care, and on the huge furlough operation that saw many billions of pounds spent in Scotland, and a fine thing, too. He should take back some of his more intemperate remarks, which do him no credit at all. We should do our level best to work together in a civilised and collegiate way to get through this pandemic, and that is what this Government intend to do.

Lindsay Hoyle: I did not hear what was said because Members were chuntering at the same time. I want us to calm it down and to use language that is appropriate to this Chamber. Please make sure we treat each other with the respect that I expect from all of you.

Bob Seely: Thank you, Mr Speaker. I congratulate the Prime Minister on his balanced approach, unlike that of others in this House. There is increasing concern among epidemiologists, modellers, oncologists and scientists about the use of modelling and forecasts. Among the comments are that the forecasts we may have been using over the past two years are “almost hysterical,” “lurid,” “spectacularly wrong,” “consistently overconfident” and “substantially inflated.” Those comments are from scientists, not journalists or politicians. Does the Prime Minister trust the modelling he is getting, and will the Government consider an inquiry into the use of modelling and forecasts, many of which have been found to be unrelated to reality?

Boris Johnson: It is important for everybody to understand the limitations of models; they are not forecasts, but mathematical projections based on the data the modellers currently have, particularly when it came to Omicron, about the severity of the disease. That is why, when we feed assumptions about severity that are excessive into the models, we get results that are excessive; that is what my hon. Friend is driving at. Some of the models or calculations are much closer to what is happening now, and models are useful and cannot be dispensed with as we need to have projections, and we in this House should not in any way try to undermine or attack the independent scientists, whose independence is absolutely vital for our ability to handle this disease.

Chris Bryant: The Prime Minister knows that one of the big issues facing the NHS is capacity, in particular in the workforce. May I make some simple suggestions that would have an effect very quickly? We should reward people for staying on in the NHS right through to retirement. We should also reward people for returning from retirement. We must deal with the gender pay gap, too, as that is making it difficult for many women to stay on in the profession. We should also provide sabbaticals so that people do not burn out in the profession. Finally, we must deal with the problem of overtime, which is now barely worth doing for many doctors and nurses; if we increase that, perhaps we could increase capacity and save many more lives.

Boris Johnson: We are doing everything we can to ensure flexibility in the NHS so that staff can move more easily, by electronic passes and so on, from one place to another. We are also getting many doctors back to the service. We have, too, our volunteers in the vaccine roll-out and now in helping hospitals with the current pressure. More fundamentally, we are recruiting large numbers of NHS staff, and there are now more people working in the NHS than at any time in its history—about 50,000 more, all told, this year than last year. That is a result of the investments we are making.

Greg Clark: I welcome the changes the Prime Minister has announced: all of us should want to be protected by vaccines rather than restrictions in future. He will be aware that on new year’s eve the UK Health Security Agency published a report that says that booster doses wane in their protection against infection but not against severe disease after 10 weeks. Given that NHS and care workers started having their booster doses in the middle of September, which is over 16 weeks ago now, is it right to consider giving those vital workers a fourth dose, as is happening for similar workers in Israel?

Boris Johnson: My right hon. Friend makes an important point and the Joint Committee on Vaccination and Immunisation continues to keep fourth jabs under continuous review.

Edward Davey: Parents, teachers and pupils are incredibly nervous that due to the unprecedented spike in covid numbers children might once again face hundreds of thousands of hours of lost learning. The reality is that due to staff shortages many of our schools are at breaking point, and an entire generation has already lost years of learning they might never get back. So will the Prime Minister do the right thing and properly fund a catch-up programme, starting by providing every parent with a £30 catch-up voucher for every day their child misses school? This Government are not only letting down millions of children, but, by short-changing them, are damaging the future of our country.

Boris Johnson: That is why it is so important to keep schools open and why it was so important to take the balanced and proportionate approach that we have. It is very important to ensure that schools are safe and I thank parents and teachers for everything that they are doing, but the right hon. Gentleman is wrong in what he says about catch-up. We are investing massively in  catch-up. We have a £5 billion programme of investment in catch-up. We are innovating the whole time, particularly with investment in one-to-one tuition, or one-to-two-or-three tuition, for kids who need it. That is a huge development, which is of massive benefit to pupils up and down the country.

Maria Miller: I thank the Prime Minister for his statement today. I also thank people such as Dr Tim Cooper in my constituency who took up the Prime Minister’s challenge and enabled absolutely every eligible person in my constituency to have their boosters over the Christmas period, with walk-in clinics continuing until Sunday of this week. Can the Prime Minister take care to remember some younger residents in particular who have had covid and have had to wait for their booster through no fault of their own? Can the situation of those individuals be taken into account if any new measures are considered, or, indeed, can he can think of ways that we could perhaps ease the restrictions on their access to boosters?

Boris Johnson: My right hon. Friend makes a very important point; it is a fundamental point about fairness. It was raised with me last night at the press conference by one of the public questioners. It would not be fair to insist on boosters as meaning that someone has been fully vaccinated until young people in particular have had a chance to get boosted.

Meg Hillier: We have seen a huge demand for lateral flow tests. Does the Prime Minister regret urging everyone at his press conference to get “tested, tested, tested”, without making sure that there were the supplies necessary to deliver on that?

Boris Johnson: No, because it is thanks to the efforts of the NHS testing operation and of testing manufacturers not just around the world, but in this country—there was stupefying ignorance displayed by those on the Labour Front Bench—that we have been able to triple our testing capacity. We are testing more per head than any other European country. Usually, they love these European statistics, but they seem a bit shy about this one. That is the reality though. Testing is a good thing. It is very important that people do it, and people should certainly get a test.

Steven Baker: I have certainly disagreed occasionally with my right hon. Friend in the course of this crisis, but I also credit him with doing his very level best to preserve freedom, lives and prosperity in this country. None the less, he will know, as I do, that the public are now yearning to know when we will get back to the old normal. Investors need to know, the wider public needs to know, and every business person in the country needs to know when the sword of Damocles of further restrictions will not be hanging over them. Will he please bring forward a plan to get back to the old normal?

Boris Johnson: The plan is the one that we have in place. It is to get on with plan B. As my hon. Friend knows, there will be a review of it—indeed, the plan B  measures expire on 26 January. By then, we hope to have greatly increased the already extraordinarily high number of people in this country who have been not only vaccinated, but boosted.
The number of people who have been boosted in the UK is currently 34 million. There are a further 9 million that we still need to reach. As I said to the House before Christmas, our plan was to double the speed of the booster roll-out, which we did. Every eligible adult got a slot before new year. We need to increase the number of boosted members of the population, and, as omicron blows through—it is very much my hope and belief that it will blow through—I do believe that we will be able to get back to something much closer to normality. That does not mean that there will not be further challenges, but I think that life will return to something much, much closer to normality. It will not be necessary to keep the current restrictions in place, and business investors will have all the confidence that they need. To be frank, Mr Speaker, we are already seeing huge investments in this country because of the approach that we have taken.

Lindsay Hoyle: I think I need to help a bit. Prime Minister, I am here in the Chair, not over that way—that will help us all. The other thing I would say is that I do not want to keep you here forever, Prime Minister, but a lot of people are standing to be called and we do want to hear from them, so it might be easier for you if you could shorten some of the answers.

Joanna Cherry: At Prime Minister’s questions, my right hon. Friend the Member for Dwyfor Meirionnydd (Liz Saville Roberts) movingly raised the plight of care home residents, especially those with dementia, who have been left without visits from their loved ones during the pandemic. We on the Joint Committee on Human Rights have repeatedly raised our concerns about care homes implementing highly restrictive visiting rules, potentially contrary to the Government’s guidance and in contravention of the human rights of residents and loved ones. We have recommended that proper individualised risk assessments be carried out in all cases. I noted the Prime Minister’s sympathy for the plight of my right hon. Friend and her mother, but what specific steps will his Government take to make sure that visiting restrictions are proportionate across the board?

Boris Johnson: I repeat my expression of sympathy for all those who need to visit people in care homes and for the loved ones in care homes who are desperate to be visited. As I said, we have in place a system that allows for unlimited-duration visits for three nominated persons, which is an improvement on where we were—the hon. and learned Lady might remember—at earlier stages in this pandemic. We want to continue with a balanced and proportionate approach that does not allow the disease to get back into care homes in the way that it did. The faster we can get through omicron, the quicker we will be back to normal.

Lindsay Hoyle: We congratulate Sir Robert Buckland on his knighthood.

Robert Buckland: Thank you, Mr Speaker.
I am sure that we on the Government Benches warmly welcome my right hon. Friend’s statement.
I had the honour of joining an army of volunteers at my local vaccination hub over Christmas to help to get people jabbed—there have been thousands of people every day and it has been a huge privilege. My local hospital, the Great Western Hospital, has declared an internal critical incident. I would be extremely grateful to my right hon. Friend and the Secretary of State for Health and Social Care if I received maximum assurance that the hospital leadership will get all the support it needs to maintain essential services for the people of my constituency and beyond.

Boris Johnson: I echo your congratulations, Mr Speaker, to my right hon. and learned Friend. The hospital he mentions will get every support throughout this difficult period and we will do everything we can to engage with him on the issues he raises. As I told the House, that support is made possible through the funding we are putting in.

Janet Daby: Will the Prime Minister take this opportunity to join me in thanking the Welsh Labour Government for sharing 4 million tests with England?

Boris Johnson: Actually, the UK Government have supplied tests to the whole country. We are very proud to collaborate with people and testing organisations throughout the country.

Robert Jenrick: I thank the Prime Minister, whose judgment was proven to be absolutely correct over the holidays.
As a parent, I know that although the wearing of masks at school may seem a small price to pay to ensure that kids are back in the classroom getting the vital face-to-face teaching they deserve, it is not cost free and does affect the quality of teaching and our children’s wellbeing. What assurance can my right hon. Friend give to me and parents throughout the country that the measure will be constantly reviewed and last only as long as is absolutely necessary?

Boris Johnson: I can give my right hon. Friend a categorical assurance that masks in schools will last not a day longer than we need them.

Afzal Khan: Winter is always a difficult time for the NHS, but we are now in an unsustainable situation. Last night, 17 hospitals across Greater Manchester announced that they were suspending non-urgent surgeries because of the impact of covid-19, and at least 10 trusts throughout England have been forced to declare critical incidents since Christmas. Last week, the Prime Minister said that he hoped we could “ride out” this wave, but I do not think our hard-working NHS staff or the Government’s scientific advisers would agree. What additional steps will he now take to ensure that Greater Manchester’s hospitals do not become critically overwhelmed?

Boris Johnson: What we are doing is supporting hospitals in Greater Manchester and up and down the country with record investment and, as I said in an earlier answer, by making sure that we supplement the staff by calling doctors back to the colours and with  volunteers, new therapeutic treatments and all the extra things that we are doing. But fundamentally, there is also a job for this country: to follow plan B and the guidance that we put in place and get boosted. That is the most important thing we can do.

Harriett Baldwin: I warmly welcome the boost that the Prime Minister gave to the “Get Boosted Now” programme. Over the recess, almost 1 million boosters a day were given to people and I thank everyone involved. I also welcome the leadership that he showed on the COVAX facility and in making sure that vaccinations have been spread around the world. Given the risk of variants emerging in places where vaccination rates are not as high as in the UK, is there more that we can do to boost vaccination rates around the world?

Boris Johnson: The UK can be proud of what we are doing—my hon. Friend knows this area well—to support vaccination around the world. Thanks to the deal we did with Oxford-AstraZeneca, 1.5 billion doses were administered to people who needed them around the world at cost—that was thanks to the deal negotiated by the UK Government. We put £478 million into COVAX and we have a pledge to deliver 100 million surplus vaccines around the world by June this year.

Kim Leadbeater: Throughout the pandemic, people in education have worked heroically to keep our schools open and children learning, but they are struggling. I spoke to a headteacher in my constituency this morning who is currently working as a school caretaker, receptionist, classroom teacher and covid tester. Can the Prime Minister at least admit to overstretched staff working in education that communication with schools needs to be better and that more could and should have been done before schools returned to prevent this highly predictable situation?

Boris Johnson: I share what the hon. Lady said about the amazing work that is being done by teachers and schools up and down the country. I have been to many of them and they have done incredible things to make their schools covid-compliant and protect against infection. They have done a fantastic job. We communicate with them the whole time. My right hon. Friend the Secretary of State for Education has done a formidable job of interacting with teachers and parents to try and get our messages across. I know that the hon. Lady will want to be in the Chamber for the statement that he is about to make.

Andrew Percy: In their critique, the Opposition Front Benchers forgot about the 50,000 hospital beds that they cut when they were in power, including closing entire wards at Goole and District Hospital—but I digress. I remind the Prime Minister of the important role that volunteers are undertaking in the NHS, particularly those in services such as the ambulance service who will be attending more and more jobs in the coming weeks and months to support our NHS. Given that we will rely on our NHS to rightly keep the economy open, will he look closely at possible future reward and recognition payments to our NHS staff for the extra efforts that they will make this winter?

Boris Johnson: I thank my hon. Friend very much. He makes an incredibly important point about the record of the Opposition, because the pressure on the NHS is caused by the limit to the number of beds that we have—there are only about 100,000. That is why this Government are getting on with building 40 more hospitals—[Interruption.] Yes, we are. And that is why we are recruiting 50,000 more nurses. They opposed the lot of it.

Hilary Benn: Up until now, the advice to care homes has been that if someone tests positive with a PCR test, they should not be tested using a PCR or a lateral flow test for 90 days unless they develop new symptoms during that time, in which case they should be retested immediately using a PCR test. Given the changes to the testing arrangements that the Prime Minister has announced today, does that advice still hold?

Boris Johnson: No, it does not, and I will make sure that the right hon. Gentleman is advised on the new arrangements.

David Morris: The University Hospitals of Morecambe Bay NHS Foundation Trust has been overwhelmed recently with people effectively bed blocking because they cannot get back into the care homes. I know we are putting tents in car parks; I have seen that on the news. However, in a helpful way, I ask whether my right hon. Friend does not think it would be right to enact, in areas such as mine—more rural areas going north—the big Nightingale centres like we had in Preston.

Boris Johnson: I am grateful to my hon. Friend, but what we are doing is ensuring that we support hospitals up and down the country that are facing the pressures he describes, not only with more staff but with more facilities and on-site Nightingales, as I said in my statement.

Kirsten Oswald: My hon. Friend the Member for East Dunbartonshire (Amy Callaghan) and the hon. Members for Chatham and Aylesford (Tracey Crouch), for Bradford West (Naz Shah) and for North East Fife (Wendy Chamberlain), all of whom have been affected by the lack of proxy voting and remote participation, have jointly written to the Leader of the House seeking the reintroduction of remote provision. That is not just a covid issue, but we certainly see now how much it is needed. It matters because, as things stand, Parliament is excluding MPs and disenfranchising their constituents. Will the Prime Minister throw his weight behind their calls to modernise and ensure that no Member is prevented from fully representing their constituents?

Boris Johnson: I am grateful to the hon. Lady. I think I speak for everybody here when I say what we want to see is the House getting back to normal business as fast as possible, and to that end I suggest that everybody follows the guidelines and gets boosted.

Steve Brine: The Prime Minister deserves real credit for his recent decisions on covid. He has followed the evidence, but he has also taken the wider view of our society and our economy, and that has to be right. In my opinion, England is not out of  step with Scotland and Wales—they are out of step with us. May I ask my right hon. Friend to also take the long view? It is increasingly clear that we are a long way from learning to live with covid, but we also have an NHS on a permanent war footing, and that is not sustainable. What is the long-term plan for living with covid in 2022, and could that include any changes to mandatory isolation and test and trace? For instance, we see different isolation dates in the United States and Germany from here in the UK.

Boris Johnson: We will continue to keep isolation timings under review. We do not want to release people back in to society or to their workplace so soon that they just infect all their colleagues; that would not be sensible. As I said in my earlier answers, we have a good chance of getting through this difficult wave and getting back to something like normality as fast as possible. It is important that omicron seems to provide some sort of immunity against delta, for instance, and that may be a positive augury for the future.

Kevan Jones: I thank the Prime Minister for his statement. He has announced that those testing positive with a lateral flow test will no longer have to go for a PCR test, but that it will be down to the individual to inform the Government of the result. May I ask what percentage he thinks will do that—and, more importantly, will not do that? As PCR tests are important for analysing the genome of the virus, what affect will that non-reporting have on our ability to look at new variants that develop?

Boris Johnson: I am grateful, but I must say that throughout the pandemic the public have continually surprised on the upside with their determination to take this seriously. Rather than undermining confidence in them, a very high proportion of them continue to do the right thing and I believe always will.

Mark Harper: May I press the Prime Minister on a couple of previous answers? He has come to the House today to extend plan B restrictions for a further three weeks, but he will know that the chief scientific adviser has said that covid is going to be with us forever, and we are going to have variants forever, so may I press him on his answer to our right hon. Friend the Member for Maidenhead (Mrs May) about an exit strategy? We cannot respond to every new variant in the way we have to this one. We must have a plan to live as normal with this virus forever. When will he set out that plan in this House so that we all know where we stand?

Boris Johnson: If my right hon. Friend looks at what we are doing, he will see that the measures we have in place expire on 26 January, as he knows. Whatever the situation may be then, we will continue with the fundamental tools that we have—that is, vaccination, therapeutics and testing. But it is important that omicron already seems to provide some sort of immunity against delta. That is a point that he should feed into his capacious brain.

Lindsay Hoyle: I welcome the new Member, Helen Morgan. [Hon. Members: “Hear, hear.”]

Helen Morgan: Thank you, Mr Speaker.
Ambulance services and paramedics are desperately struggling to maintain a safe and timely service across the country. My constituency of North Shropshire is no exception, and inexplicably has seen two of its ambulance stations closed, as well as waiting times sky-rocket. With the crisis in emergency care escalating, will the Prime Minister commit today before this House to supporting my call for a full and proper review of ambulance services by the Care Quality Commission?

Boris Johnson: It is very important that everybody should get the ambulance service that they need. That is why we are investing £55 million more and that is why there are 500 more people on the ambulance staff than there were in 2018.

Michael Fabricant: Is my right hon. Friend aware that the eyes of the world are literally upon us, with The New York Times and newspapers in France, Germany and Israel, among others, talking about the Prime Minister’s bold initiative in sticking to plan B and recognising that omicron is less serious than previous variants? They say that Britain was the first to recognise that, and that we were the first to start a vaccine programme in Europe and also the largest testing programme in Europe. Will my right hon. Friend still, however, maintain a watching brief on other variants, because there may be more serious variants in the future—we just do not know? Will he also take this opportunity, again, to correct what the right hon. Member for Ashton-under-Lyne (Angela Rayner) said and say that we are not cancelling any cancer operations?

Boris Johnson: Yes indeed. I really think that she should withdraw that because it is not—[Interruption.] She did say that. [Interruption.] She did, and it was totally untrue. It is because we are the most boosted and the most tested, and because we have the most antivirals of any European country, that we are able also to be the most open. That is thanks to the efforts of this Government, but also hundreds of thousands of people up and down the country—millions of people—who are doing the right thing.

Zarah Sultana: NHS workers say that they are broken—overworked, exhausted and undervalued, pushed to the brink before the pandemic and now abandoned by the Government. So will the Prime Minister listen to workers and trade unions and support NHS staff by protecting doctors and nurses who treat covid patients by giving them FFP3 masks and properly rewarding them not with cuts or pay rises that are actually pay cuts when you take inflation above 5% into account, but with a genuine pay rise of 15%, making up for a decade of falling pay? If he asks how we are going to pay for it, he could look at the £37 billion put towards the privatised test and trace budget.

Boris Johnson: I really think that the hon. Lady should listen to what is actually going on this country today. We are investing record sums in the NHS. There are 5,000 more doctors and 10,000 more nurses now than there were last year. There are record numbers of people in the NHS. That, in my experience, is what NHS staff want to see, in addition to the extra money  we have put into pay rises. That has been made possible through the £36 billion that we have voted through and that she opposed. [Interruption.] Maybe she did not, but I think the record will show that she voted against it.

Dr Caroline Johnson: United Lincolnshire Hospitals NHS Trust declared a critical incident on 1 January, not due to the number of omicron patients but due to pressures on staffing caused by omicron cases and isolation pressures. Local MPs have been reassured that acute services are safe and open. Will my right hon. Friend join me in thanking the staff of United Lincolnshire Hospitals for their work and dedication under extraordinary circumstances, and will he give me his assurance that he will do all he can for United Lincolnshire Hospitals, and that his Government will provide it with all the support that is necessary?

Boris Johnson: I thank my hon. Friend for her question. I know United Lincolnshire Hospitals: I remember going there with my right hon. Friend the Member for West Suffolk (Matt Hancock), the former Health Secretary—whose grandmother worked there, if I recall correctly—and I know what an incredible job its staff do. I know how difficult it has been for them, and as I said to the House and to the country, it will continue to be difficult in the course of the next few weeks, but we will get through it, and we will give the NHS all the support it needs.

Stephanie Peacock: Average pay in Barnsley is in the lowest 30% in the country, and those on lower incomes are more likely to rely on statutory sick pay. Does the Prime Minister accept that the shockingly low levels of sick pay in this country will impact the number of people able to isolate, and can I ask him again to commit to increasing those levels?

Boris Johnson: As I said in an earlier answer, we have made sure that sick pay for those who are isolating kicks in on day one. That is equivalent to a 75% increase, but what we are also doing—because I do appreciate that some families are finding it very tough at the moment—is increasing the £500 million hardship fund that is available through local councils to help people through a difficult time. What would not be sensible is to follow the advice of so many on the Opposition Benches and go for tougher measures, locking down the economy, which would be something that would impoverish the people of this country.

Lindsay Hoyle: Congratulating him on his knighthood, I call Sir Bill Wiggin, or Sir William Wiggin.

Bill Wiggin: My right hon. Friend has touched on the number of people in intensive care: 90% of those have not had their booster, and 60% have not had any vaccination at all. He will know that there are people out there with very good reasons not to be vaccinated, who get tarred with the same brush as people who have been reading nonsense on the internet. Can we have better stats, so that people can see the benefits of vaccination and be encouraged to take it up? Obviously, everybody benefits if those people are not in hospital.

Boris Johnson: My hon. Friend makes a very powerful and important point: we should not bully or demonise those who, for medical reasons or for whatever reason, simply cannot get vaccinated. Of course that is right, but it is also very important that people understand the benefits to them and their families of getting boosted in particular. The benefits are overwhelming—they are there for everybody to see—and I am afraid that that tragic statistic about the people in ICU is also plain for all to see.

Clive Betts: The Government were right to encourage people to get tested over the holiday period. Like many of my constituents and thousands of people across the country, I went around several pharmacies, and all I saw were notices in the window saying, “No lateral flow tests available.” That is the reality of the situation, so I ask the Prime Minister two simple questions: first, what steps did he take before the holiday period to get an assurance for himself that tests were going to be freely available? Secondly, when did he become aware that millions of tests were locked away in a warehouse and would not be available until after the holiday period?

Boris Johnson: We took every possible step to step up our supply of tests. We tripled the supplies, and deliveries went up to 900,000 a day. To listen to Labour Members, Mr Speaker, you would not believe that this was the country that was conducting more tests per head than any other in Europe. They are simply refusing to give credit where it is due. I appreciate that huge numbers of people want to be tested, but we are doing our level best to meet demand.

Damian Green: I very much welcome my right hon. Friend’s announcements today. One of the best things we could do, both for public health and for our hard-pressed hospitals, is to make sure that the small but significant number of people who refuse vaccination altogether are persuaded of the error of their ways, so can I ask my right hon. Friend to redouble the Government’s efforts? Some people will no doubt be completely, misguidedly recalcitrant, but I believe that the vast majority are persuadable. Whether through education, advertising, or frankly anything this side of coercion, can he redouble the Government’s efforts to persuade those who are unvaccinated to take the jab?

Boris Johnson: My right hon. Friend is quite right, and that is why we are enlisting the help of community leaders up and down the country—anybody who speaks with authority in communities—to get that message across. That is also why the vaccine taskforce, as I recall, spent £675,000 on outreach to hard-to-reach groups. What did the Opposition say? They said that the funding could not be justified.

Sammy Wilson: I give the Prime Minister credit for not rushing into new restrictions, despite the hysterical views of some medical advisers. I only wish the Health Minister in Northern Ireland had taken some advice from him rather than rushing into restrictions. I also welcome the lifting of restrictions on the aviation industry and of the need for pre-departure tests.
The Prime Minister rightly identified that one of the problems is the shortage of staff in the national health service because of the need to isolate. Looking forward, however, what concerns does he have and what plans has he made for when the vaccine mandate applies to health service staff? The assessment of the Secretary of State for Health and Social Care is that up to 114,000 staff will not be available because they have not been or will not have been vaccinated. Is the Prime Minister concerned about the pressures on the health service come April?

Boris Johnson: We are actually seeing very encouraging signs of take-up in the health sector and in social care. That is a great and positive thing for individuals in both those professions.

Shailesh Vara: At the start of the pandemic, there was evidence that members of the black, Asian and minority ethnic community were more vulnerable to the covid virus. Has any analysis been carried out to determine whether omicron acts in a similar way? The Prime Minister will appreciate that that is of particular relevance given the significant number of people from the BAME community who work in the health and care sector.

Boris Johnson: My hon. Friend asks an extremely important question. I think the answer is that there is currently no evidence, but there is certainly evidence that the different levels of vaccine take-up, and booster take-up in particular, are affecting outcomes.

Mike Kane: Disraeli gave his one nation speech in Manchester in 1872; I doubt he would recognise the party political knockabout that the Prime Minister is engaging in over a national crisis. What I will say about the situation is that tonight, with case rates rising in Greater Manchester, there are 600 patients across GM who cannot get out of hospital due to social care staff shortages. About half of care homes are not currently accepting anyone. That is not just to do with the pandemic; it is historical under-investment in our social care sector. Surely the Prime Minister sees that.

Boris Johnson: I have a couple of points—I do not think the hon. Gentleman knows much about Disraeli, by the way. The Mayor of Greater Manchester actually just said that the Government are taking the right approach. To the hon. Gentleman’s point about fixing the problems of the social care sector, which is valid, it is this Government, after decades of failure by Labour to do it—[Interruption.] Absolutely true. We are fixing social care, and they would not even support it.

Aaron Bell: Mr Speaker, I hope you had a good Christmas break—a better break than the shadow Health and Social Care Secretary, who, since we last met, has taken a number of positions. On 19 December, he said that the Government need to “act now” and Labour called for actions before Boxing day. On 20 December, he said that the British public know that “additional restrictions are inevitable”. On 21 December, he criticised the delay. On 27 December, he said that
“people will be relieved to see no new restrictions”.
We all want a responsible and constructive Opposition, but does the Prime Minister agree that that is not opposition, but opportunism?

Boris Johnson: That sums up all people need to know about the Labour party. It instinctively reaches for measures to lock down the UK economy and do huge damage. We are taking a balanced and proportionate approach. There are difficulties ahead, but we are taking the right approach. If the Opposition are now saying that they support it—[Interruption.] Are they saying they support it? I do not know. Let us wait for Captain Hindsight to come back.

Ben Lake: The Prime Minister has made his position clear in saying that the Government will see out the current wave with no further restrictions or new support for businesses, but, as he will know, the Government in Wales have implemented new measures to limit the spread of the virus. Does he not agree that it would be better for Wales to be afforded the fiscal powers required to support those public health measures, so that the Welsh Government’s response can be as flexible and effective as possible?

Boris Johnson: The UK Government have supported Wales, and the UK as a whole, throughout the pandemic to the tune of billions and billions of pounds. We supply the vaccines, we supply the testing kits, and furlough will continue to do everything to support the whole of the UK.

Fay Jones: On Friday, I will be holding my team meeting in the local pub because under Welsh Government rules we are not allowed to go to our socially distanced office. We cannot do parkrun and we cannot watch outdoor sport on the touchline—but we can cwtch up together in the clubhouse to watch it. May I commend the Prime Minister for his bold decisions, and ask whether he agrees that the inconsistencies in the rules in Wales are not just ludicrous, but are harming the Welsh economy?

Boris Johnson: I have tried to be consensual across the House—[Interruption.] I have, and I have tried to build on those aspects of our handling of covid—[Interruption.] I was very consensual to the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), and, frankly, I thought he was rather rude.
Let me put it this way. There is much, much more that unites all parts of the UK in our handling of covid than divides us. In comparison with any other European country, we are moving virtually in lockstep. There are some baroque eccentricities in various other parts—in Wales—and I will make no comment on those, but I will repeat what I have said: we will continue to provide support throughout the UK.

Justin Madders: Many of my constituents who were doing the right thing and self-isolating are becoming frustrated on days six and seven because they cannot gain access to the lateral flow tests that they need to be released early, although just three weeks ago the Health Secretary told the House that the country had tens of millions of tests.  Can the Prime Minister tell us what has gone wrong, and will he apologise to my constituents for putting them in this position?

Boris Johnson: I certainly share the frustrations of everyone who has found it difficult to get a test during a time of unbelievable demand. We have taken responsibility by tripling supply and creating our own home-grown UK lateral flow testing manufacturing capability, of which the Labour Front Bench was in unbelievable ignorance when this debate began.

Edward Leigh: Earlier this week the Lincolnshire hospitals declared a critical incident, and people in Lincolnshire no doubt thought that they were being overrun with covid. However, NHS officials told the Lincolnshire MPs yesterday that of all the intensive care beds in Lincolnshire, only two were taken by people because of or with covid, and although there were large numbers of staff absences, a quarter could be accounted for by staff being absent because they were isolating. The suspicion is that the NHS is being brought to its knees not by covid, but by the rules that require people to isolate for so long. What is the road map for shortening the period of isolation?

Boris Johnson: What we are doing is supporting the NHS, supporting staff and making sure that we have as much capacity as possible, and absenteeism, although high, is not as high as it has been at some other points during the pandemic, although that is no cause for complacency. What we will do is keep the period of isolation under constant review, and if we think we can bring it down without increasing infection, of course we will do so.

Alex Sobel: The Prime Minister is right to laud our life science industry, as British universities and British scientists have helped us to get through covid; so why, after developing the UK’s Vaccine Manufacturing and Innovation Centre with taxpayer money alongside British universities, have the Government decided to sell it off so that in future pandemics future vaccines will be held not in public for all of us, but in a few private hands?

Boris Johnson: What we are doing is investing hundreds of millions to make sure that we have a dynamic vaccine industry. Clearly the Government need to work hand in glove with the private sector, as we have done. No matter how deep the abhorrence of the private sector on the Opposition Benches, it was private-sector private capital that produced the vaccine success.

Mary Robinson: At the beginning of 2020, Stepping Hill Hospital in my constituency was under such severe winter pressures that it was reaching critical OPEL, or operations pressure escalation level, 4. Since then, doctors, nurses and staff have worked tirelessly during the course of the pandemic, but covid is now taking its toll, particularly the omicron virus, and it is one of 17 hospitals that have said they will be taking a pause on non-urgent surgery. Will my right hon. Friend and my right hon. Friend the Secretary of State for Health and Social Care work with the Greater Manchester hospital trusts to ensure that they get all the support they need through this critical time?

Boris Johnson: I thank my hon. Friend for all the support that she gives to hospitals in the Greater Manchester area, which I know well, in which she knows we are investing hugely. I thank them for the care and the trouble that they are taking in a very tough time. They will get all the support that they need.

Chris Stephens: The Prime Minister has to make decisions based on evidence. However, reinfections are not included in the UK Government covid cases figures, despite warnings by scientists at Imperial College London that up to 15% of omicron cases could be of people who have had coronavirus before. So can the Prime Minister assure us that reinfections will be tracked and recorded on the UK Government’s dashboard, and if so, when?

Boris Johnson: I am grateful to the hon. Gentleman, but the decision is up to the UK Health Security Agency.

Edward Timpson: I welcome the ongoing support, financial and otherwise, for our hospitality sector, particularly in cases where it is a critical lifeline, even still. Of course, the best thing we can do for them is to take away all restrictions that remain in place, but we also have to recognise that there may be an opposite scenario where new restrictions are considered in the future. To that end, can my right hon. Friend confirm that weddings and funerals would be exempt from any further restrictions?

Boris Johnson: There are no restrictions on them at the moment, and that is certainly the way we wish to keep it.

Matt Western: In Warwickshire last year, there were 436 excess deaths caused by covid in care homes. Currently, 77% of residents and staff in care homes are boosted; the other 23% are not. What are the Government doing to ensure that they get the booster vaccination, so that we do not repeat the mistakes of last year?

Boris Johnson: Often the problem in care homes is that someone may have had covid recently and therefore is not eligible for the booster, so people have to come round, but we are doing that as fast as we possibly can.

Luke Evans: It was welcomed by both sides of the House when, in the summer, the Prime Minister came to the Dispatch Box to announce that an inquiry would take place on the lessons learned. Just before we broke for the recess it was announced that Baroness Hallett would be leading that inquiry. Can the Prime Minister give us an update on how the panel is forming, the timings of when that will happen and the terms of reference, if they should appear?

Boris Johnson: I thank my hon. Friend. Under the Inquiries Act 2005, as the House knows, it is up to the chair of the inquiry to begin framing the terms of reference herself.

Ellie Reeves: As is the case for Members across the House, many pharmacies in my constituency are out of stock of lateral flow tests, and when people try to order online it says that none  are available. Yet The Sunday Times reported this week that British manufacturers of lateral flow tests are battling with the Government after their kits failed to be cleared for use in this country, despite being available in Europe. When will the Prime Minister pull his finger out to boost testing capacity and boost British manufacturing?

Boris Johnson: Of course kits need to be approved—[Interruption.] Perhaps the hon. Member for Ilford North (Wes Streeting) wants kits that are not approved to be on the market. They have to be approved by the Medicines and Healthcare products Regulatory Agency, and that is the right thing; but my understanding is that we have been up at 15% of lateral flow tests in this country being supplied in the UK, from zero.

Tom Hunt: I congratulate the Prime Minister on sticking to his guns and not bringing in additional restrictions over the festive period and threatening to charge people £60 for going to work, like they did in Wales. However, the mental health damage done by even the threat and fear of restrictions has been significant. Some of my constituents have actually said it was worse this time than it was when the lockdown happened, because then they thought there was a light at the end of the tunnel, and their fear now is that this could be a never-ending nightmare. Could the Prime Minister give me assurances that mental health is at the heart of the decisions on covid that we will make in the future?

Boris Johnson: My hon. Friend makes an incredibly powerful point, which I think should be heard in all parts of the House. As for those calling for restrictions—as the hon. Member for Ilford North, who I think speaks on health matters, did repeatedly before Christmas—lockdowns have an effect on people, and particularly on mental health.

Tony Lloyd: Will the Prime Minister make it very clear to some of his Back Benchers that a strategy for living with covid cannot include every hospital in Greater Manchester being unable to deliver elective surgery? Other hon. Members have raised that point. Will he make it clear that the strategy will include resources being put in to make sure that we catch up in Greater Manchester for people such as one of my close friends, who needs a hip replacement because she is in such pain?

Boris Johnson: Yes, and that is why we have the NHS and social care fund. That is why we are putting that measure through. How unbelievable that you guys did not vote for it—not you, Mr Speaker.

Holly Mumby-Croft: I was fortunate to visit our new vaccination hub in Scunthorpe and speak to the healthcare professionals and staff who are doing a tremendous job, not just of jabbing people in the arm very efficiently but of reassuring the small number of residents who are still nervous about joining the rest of us in having our vaccinations. Will my right hon. Friend thank the wonderful volunteers and staff across my constituency for the important work that they are doing and their contribution to the national effort that he is leading?

Boris Johnson: I share my hon. Friend’s sentiments entirely. I thank the NHS staff and all our incredible volunteers.

Lisa Cameron: As chair of the all-party parliamentary health group, I have been contacted by people up and down the United Kingdom who tell me that they are still having great difficulty in accessing GP appointments. GPs are working flat out during the pandemic, but ongoing capacity issues remain. What more can be done to support GPs to increase capacity, which is needed because other illnesses that must be seen at an early stage are continuing during the pandemic, and ensure that everyone who needs to see a GP is able to do so timeously and safely?

Boris Johnson: I agree completely with the hon. Lady about GPs: they have been particular heroes of the vaccine rollout. We have 1,300 more GPs this year than last year. We need to do more—that is why we have put £250 million into supporting GPs now.

Ben Spencer: I thank my right hon. Friend for holding firm on plan B and for rolling back travel restrictions, which will relieve many of my constituents. I also welcome the increased use of lateral flow tests for diagnostic testing. For clarity, is it the case at the moment that that is only for asymptomatic testing—for people who do not have symptoms—and that if people have symptoms, they will still be required to get a PCR test? If so, can I urge him to look further into using lateral flow tests for that purpose, because if people with symptoms have to trundle over to a PCR testing centre, wait 24 hours to get the results and self-isolate until negative, we will not be living with the virus?

Boris Johnson: That is right. We will encourage people to do so, but it will not be compulsory.

Kerry McCarthy: In response to my hon. Friend the Member for Sheffield South East (Mr Betts), who talked about the severe shortages of lateral flow tests in pharmacies, the Prime Minister was incredibly dismissive and seemed to suggest that my hon. Friend was making it all up. The Prime Minister might like to speak to my constituent who both phoned and emailed me on Monday desperate to go to work the next day as a crucial frontline NHS worker but who could not get his hands on a test. I ended up popping round myself with some spare tests. Can the Prime Minister assure me that from now on my constituent will be able to get the tests that he needs when he needs them, so that he can go to work and do his job in the NHS?

Boris Johnson: The hon. Lady really must not misrepresent what I said. I began by saying that I shared the frustrations of people up and down the country who had been unable to get the tests that they wanted. I also pointed out that we had huge demand for tests that we were doing our level best to meet, that we tripled supply, that we were making tests in this country on a scale never seen before, and that we were doing more testing than any other country in Europe. Those are positives. I fully accept that it has been difficult for people to get tests, but we are stepping up supply the whole time.

Felicity Buchan: Representing a constituency with a very international outlook, I warmly welcome the changes to the travel regulations. My constituency is also very dependent on commuters coming into central London, and certain businesses are suffering as a result of the work from home guidance. Can my right hon. Friend assure me that we will drop the work from home guidance at the earliest possible opportunity?

Boris Johnson: We will do so whenever it is safe, but as my hon. Friend knows, the measures will expire in any event on 26 January.

Fleur Anderson: Parents of children who are of primary school age and have disabilities will have been disappointed not to hear in the statement about a roll-out of the vaccine for five to 11-year-olds. Two Putney parents have written to me this week, one with a child with cystic fibrosis and one with a child with Down’s syndrome. Those children have been shielding since March 2020, and they are desperate to leave shielding. They really want the vaccine but they cannot get it. Can the Prime Ministers say more about when the vaccine will be rolled out to vulnerable children aged five to 11?

Boris Johnson: We have accepted the advice of the JCVI on at-risk five to 11-year-olds, and we will be rolling it out later this month.

Jacob Young: I welcome the announcement of no new restrictions and of the changes to testing for travel, which will make it far easier and cheaper for families to go abroad, but many immunosuppressed people in Redcar and Cleveland are unsure about what they should be doing in the face of omicron. Can the Prime Minister give a message to those who were previously shielding?

Boris Johnson: My hon. Friend has raised the issues of the immunosuppressed before, and I understand the points that he makes. We have contacted 1.3 million of them with a view to giving them treatment with antivirals.

Bill Esterson: The Prime Minister’s answers on the shortages of tests would have more credibility if he were to support British manufacturing. My hon. Friend the Member for Lewisham West and Penge (Ellie Reeves) asked him earlier why British manufacturers had not been given permission to make lateral flow tests and sell them in this country while they had permission to do so in the European Union. Why is it that the European Union has given them that permission when the British Government have not done so? Could he find out the answer to that? Giving them that permission would increase the supply of tests, which are currently in chronically short supply as we have heard again and again this afternoon, and it would be a great way of supporting of the British economy and manufacturing in this country.

Boris Johnson: I am afraid the hon. Gentleman is talking total nonsense. There was no manufacturing capability at all for lateral flow tests in this country, but we now have the largest single manufacturing plant for LFTs in Europe. Let me repeat that, because I do not think the Opposition knew this. The UK has the largest manufacturing plant for LFTs in Europe—

Valerie Vaz: Why aren’t you using them?

Boris Johnson: We are using them. It is also important that all manufacturers that want to supply lateral flow tests should pass the Medicines and Healthcare products Regulatory Agency’s tests. That is what the public would expect.

Kate Green: For the digitally excluded, the need to go online to obtain a code to take to a pharmacy in order to obtain their lateral flow tests has proven to be a real barrier. Can the Prime Minister say what assessment of the Government have made of the extent of this problem, and how it will be addressed?

Boris Johnson: The hon. Lady raises an important point. We try to make sure that we help people by delivering tests, and many pharmacies are more than happy to do it without an online booking.

Tan Dhesi: Last summer, the respected senior journalist Paul Waugh reported that the Prime Minister had been accused of making empty promises to British bioscience firms after it emerged that rapid covid tests being offered to NHS staff were manufactured by a Chinese firm. Is the NHS now buying British, or were the Prime Minister’s words today about British manufacturing simply more hot air?

Boris Johnson: I really do not think that the Opposition Front Benchers, or indeed any of them, have the faintest idea about what is going on. They have six or seven different positions on lockdown. They came to the statement this afternoon not even knowing that this country has the largest lateral flow manufacturing facility in Europe—they did not know it.

Daisy Cooper: In his statement, the Prime Minister indicated that lateral flow tests would be given to 100,000 critical workers, but the national railways alone employ almost double that number, and GPs and pharmacists in my constituency of St Albans are wondering why they have not been included as critical workers. Indeed, we could add supermarket workers to that list. Would the Prime Minister explain where that number of 100,000 came from, because it seems at the moment to have been plucked out of the air for yesterday’s press conference?

Boris Johnson: I understand the point that the hon. Lady makes, and I know that a lot of people will have jumped to the same conclusion as she did about what we could do. We have targeted the 100,000 that we have in mind. Obviously, all the public sector has access to free tests, including teachers and everybody else, but what we wanted to do particularly was to ensure that those vital nodes such as railway signalling hubs, and other crucial services such as HGV drivers, had access to tests.

Sam Tarry: I would like to thank the Prime Minister for heaping praise on the amazing scene at Redbridge town hall in Ilford South led by Dr Seedat, who managed on Christmas day and Boxing day to vaccinate 1,700 people—a phenomenal effort. At the same time, we hear that NHS workers across the  country, in their thousands, are not at work because they cannot get the tests that they need. When is the Prime Minister going to sort that out, and when is he going to prioritise tests for NHS and other frontline staff, such as in transport? He needs to get a grip, and he needs to get a grip fast.

Boris Johnson: I am afraid that the hon. Gentleman is not right, because there are many reasons why NHS staff are sadly absent, but an inability to get testing kits is not one of them. They have access to the NHS supply, and to community supplies as well.

Rachael Maskell: Letting covid rip through our communities has come at a serious cost, placing new burdens on business and putting more risk in our health and care system, along with unnecessary risks to lives. In York, infection rates are on a par with London, and are still rising sharply. Can the Prime Minister explain not only why tests have been rationed but why there is a doubling of the contact tracing time released to our local authorities, delaying the vital opportunity to lock down the virus quickly?

Boris Johnson: I know that the hon. Lady is pro-lockdown, but I do not think that that is the right way forward. We are taking a balanced and proportionate approach, and that is what this country is going to do.

Lindsay Hoyle: Last but certainly not least, happy new year to Jim Shannon.

Jim Shannon: I must have the strongest legs in the Chamber, as I have been bobbing for the past hour and a half.
I thank the Prime Minister very much for his statement and his replies. Will he outline whether he intends to work with the Chancellor and the Treasury to provide a scheme for small businesses that employ fewer than five people and have to close with no income if there is a contagious omicron case or a close contact? Too many businesses that are viable and successful can no longer hang on by a thread, and they need a further package of help right now.

Boris Johnson: As the hon. Gentleman knows, we have given significant support to businesses throughout the pandemic, and we keep that under review. What would not be good for businesses would be to release people back to the workplace too soon so that they infect everybody else who is there.

Ian Blackford: On a point of order, Mr Speaker.

Lindsay Hoyle: Is it relevant to this statement?

Ian Blackford: Yes, it is. I am disappointed that the Prime Minister has left the Chamber, because I informed him that I would be making a point of order at the end of his statement. During his statement, he twice asked me to withdraw remarks that I had made during the statement. I do not withdraw any of the remarks that I made in the statement, because I am happy to confirm that everything that we have said was truthful and was about making sure that the Prime Minister was addressing the comments that we were making. That is in sharp contrast—

Lindsay Hoyle: Order.

Desmond Swayne: Further to that point of order—

Lindsay Hoyle: No, there is no “further” for a minute. Just let us hang on a moment. First of all, we are not going to continue the debate—

Ian Blackford: rose—

Lindsay Hoyle: The right hon. Gentleman should bear with me; I have not quite finished. What you have done is corrected, and put on record your views and opinions, and I am quite happy for that to be noted. I do not want to get into a debate. I hear that there was some unparliamentary language from both sides. I do not expect it. I do not want it. I want us to start going forward in the new year with more tolerance and better respect for each other. I do not want to continue this argument or the debate any further. We have two more statements and other business to get through, so just for now let us turn the temperature down. I do not want to get into further arguments about what was said from each side, which is where we were going.
I am very happy that the point is on the record. It has, in your opinion Mr Blackford, been corrected. It is up to the Prime Minister whether he wishes to take that view. I do not like the sniping from the sidelines. I know some carried on afterwards, but I really want to move on. Nadhim Zahawi is going to make a statement.

Several hon. Members: rose—

Lindsay Hoyle: Points of order really should be made at the end of the statements. I have been very generous. Let us get moving and get through the business.

Ian Blackford: On a point of order, Mr Speaker.

Lindsay Hoyle: I really do not want to go on with this. It had seriously better be a point of order, because the last one was not—it was a correction.

Ian Blackford: The point is that the Prime Minister asked me to withdraw remarks, when what we had done was speak truth to power. However, there were several things that the Prime Minister said that were quite simply incorrect in relation to both myself and the deputy Leader of the Opposition, most importantly on the issue of poverty. Figures from the House of Commons Library and, indeed, from the United Nations confirm that poverty in this country has increased, and we need to stop the situation where the Prime Minister can come and make up his facts in the House of Commons.

Lindsay Hoyle: Order. Can I just say to the leader of the SNP that that is on the record? You have corrected it. I am not going to continue with a debate. I am going to get on with the statement, because the statement matters to all our constituents. I am not going to continue a debate that has already ended.

Education: Return in January

Nadhim Zahawi: May I begin by wishing you and the whole House a happy new year, Mr Speaker?
With permission, I would like to make a statement regarding the return to all educational settings for children, students and staff. There have been a number of adjustments to the start of this term, and I am grateful for the chance to update the House in more detail on what that means.
Although we are beginning the transition from pandemic to endemic, covid has undoubtedly been the greatest threat to our way of life since the second world war, but just as we did then, we are going to get on with the job. I know that our teaching communities have been adversely affected by the omicron variant, which is why I issued our recent call to arms, urging any teachers who have stepped away from the profession or who have retired to return, even if it is for just a few hours a week, so that we can keep children learning. I am glad to say that we have already seen the first volunteers heading back to our classrooms, including at least two of our own, my hon. Friends the Members for Eastbourne (Caroline Ansell) and for Stoke-on-Trent North (Jonathan Gullis), as well as staff from my Department who have answered that call. They do this House great credit, and I am sure I speak for the whole House when I say that we thank them and wish them well. I will have a better idea at the end of this week of the exact number of former teachers who have come forward to lend their support.
Even so, schools will be suffering some degree of staff absences. At the end of last year the figure was about 8% of staff off and that is likely to rise, with increasing cases in school and among young people as we return to school. However, let me say this: I have absolute faith in our teaching communities. Teachers, classroom assistants, nursery providers, heads and lecturers in all our education settings have worked miracles throughout this pandemic and continue to do so. To ease some of the burden, there will be a short temporary break from Ofsted inspections during the first week of term as schools undertake on-site pupil testing. Ofsted will also encourage settings that have been hit badly by covid-related staff absences to ask for a deferral of planned inspections. We will work with supply agencies to make sure that schools can continue to function, and that we prioritise children’s learning face to face and, of course, in the face of staff absences.
In November, we reopened the covid workforce fund, and we are extending it to the February half-term to support schools that are facing the greatest staffing and funding pressures. I would like right now to be crystal clear about one thing: we must do everything—everything in our power—to keep all education and childcare settings open and teaching in person. Face-to-face education is the best way for children and young people to learn and develop. You do not have to be the Education Secretary to know this. Teachers know it, parents know it and kids know it better than any of us.
I would now like to outline the additional measures we have put in place to make that possible and at the same time limit the spread of infection. On 26 November, every single nursery, school, college and university was  invited to order supplies of lateral flow tests, and they will have received their allocation of the 31 million tests, in advance of their pupils, students and staff returning, through a dedicated supply channel. As a result, all our education and childcare settings were already well prepared for the start of this term.
It is because we know that one of the most effective weapons in our covid arsenal is a robust testing programme that all secondary schools were asked to provide one on-site test for pupils at the start of term. They are getting on with that job right now, and I thank them for it. All college and university students and all staff have been asked to self-test at home before they return to the classroom. Secondary, college and university students, and education staff and childcare staff should then continue to test themselves at least twice a week. If any school or college runs out of testing kits, they can order more through the usual online ordering channel, or call 119 to receive further advice and support about their supply. We continue to work closely with the UK Health Security Agency to maintain supplies for all our education settings.
We continue to welcome international students to the United Kingdom, and universities stand ready to support any students who are required to quarantine on arrival. Overseas students should not worry, because visa concessions remain in place for international students to allow them to study remotely until 6 April this year.
The best way people can safeguard themselves and their families is by getting jabbed. The British public have responded magnificently, with around 60% having received all three jabs. We want to make sure that everyone gets vaccinated as soon as possible, which is why I have been urging parents to get the second doses for 12 to 15-year-olds that are now on offer. They can make appointments for both doses on the NHS booking service, and any children who are at risk in the five-to-11 age group can also get a jab by the middle of this month. There will also be a vaccination service in schools for those children who are eligible for jabs, beginning on Monday.
We have already delivered more than 350,000 carbon dioxide monitors, which settings have found extremely helpful in managing ventilation. Teachers have told us that they are finding the monitors helpful to manage ventilation, and in the majority of settings existing ventilation measures are perfectly adequate for the job. For the few—the very few—cases where maintaining good ventilation is more challenging, we are sending out up to 8,000 air cleaning units from next week. Alongside other protective measures such as testing, vaccinations and better hygiene, these will help to manage transmission and keep settings open.
To keep as many people as possible learning in school and college and higher education, we have said that face coverings should be worn in classrooms and teaching spaces for pupils and students in year 7 or above. We would not normally expect teachers to wear face coverings in classrooms if they are mainly at the front of the class delivering a lesson. I know people feel very strongly about this, and some have said we are wrong to do it. I follow the data, however, as I have always done. The UK Health Security Agency has said that the measure will help reduce transmission at a time when rates of infection are so high with the omicron variant. My  Department has also looked at observational data from a sample of 123 schools where face coverings were in use in the autumn term and found that there was a greater reduction in covid absence compared with those where students did not wear face coverings.
Obviously, wearing face coverings is not ideal. It is distracting for children at a time when they should be concentrating or listening to their teachers. I also know that it is not great for any child’s wellbeing and I have commissioned staff from my Department to conduct further research to better understand the negative impacts of face coverings on education along with publishing the initial findings today, but I have to strike a balance between the vital need to keep schools open and reducing the spread of infection. As my hon. Friend the Member for Stoke-on-Trent North rightly pointed out in his article in The Times,
“Facemasks are a price worth paying to keep kids where they belong, in the classroom.”
So, for the shortest possible time, and not a day more, that is what we will recommend. It is the sensible and pragmatic thing to do, and it is a proportionate thing to do.
I will review the recommendation on 26 January when I hope the data will allow us to ditch masks in class. Our young people have put up with an awful lot over the past two years. By doing everything that has been asked of them, they will have sacrificed many of the things all of us here took for granted when we were growing up. I am determined that we take whatever precautions we have to take now for the shortest possible time so that children can get back to the life that they should be leading and that they deserve.
We all owe it to this generation to give them the world-class education they deserve. For this reason, I commend this statement to the House.

Bridget Phillipson: Happy new year to you, Madam Deputy Speaker, and to the House.
I thank the Secretary of State for advance sight of his statement. I am glad that children are back at school this term, and I pay tribute to all the staff working right across education, whose commitment, dedication and hard work make that possible. Labour wants children to be in school, learning and playing together. Every day missed from school is a day they do not get back in their lives and in their learning. Last term alone, children in England missed over 10 million school days for covid-related reasons. More than 1 million children have left secondary school since the pandemic began. Almost 2 million of our youngest children have never known a normal school year. That is why Labour has set out a clear, costed and ambitious children’s recovery plan that would support our children where they have missed out, with school activities, breakfast clubs, and small-group tutoring. The Government’s plans are so limited and inadequate that their own recovery chief resigned in protest.
We will get on top of this disease by driving down transmission through vaccinating eligible children, ventilating our classrooms and testing regularly and frequently, but the steps the Government have taken so far, with further details announced at the very last minute and in the House today, simply do not rise to the challenge we face.
The Christmas break was an opportunity for the Government to ensure proper ventilation was in place in our classrooms, to get eligible children vaccinated and to ensure an ample supply of tests for families. On ventilation, 18 months ago, in July 2020, the Scientific Advisory Group for Emergencies considered a paper on the aerosol transmission of covid, and recommended:
“Particular attention should be paid to planning for winter to ensure that spaces can be effectively ventilated without significantly compromising the thermal comfort of occupants.”
In July 2021 we were told that an air purifier trial, a pilot study, was under way in Bradford, but by the time the full report of that study is available, it will be more than 30 months since the Government first ordered schools to close. How can anyone look at that timeline without concluding that for this Government our children are an afterthought?
Meanwhile, at the weekend, we heard that a further 7,000 air cleaning units are to be issued to schools. That trial will tell us either that those units are a waste of money, or that for hundreds of thousands of classrooms 7,000 units is wholly inadequate to meet the challenge they face. Which is it? While Ministers take their time to decide, it is winter. Windows are open in schools across England, and children are having to be wrapped up in their coats to learn. It is incompetent, complacent and inadequate. Our children deserve better.
On vaccination, on 30 December barely half of eligible children aged 12 and over had received even their first vaccination. We have seen in the past month with the booster jab what can be done when the political will is there, but for this Government our children are never a priority. On testing, the Government have encouraged parents to ensure their children take lateral flow tests twice a week. I looked last night for lateral flow tests online. There were none available for home delivery. We cannot test our children twice a week if there are not the tests available to do it.
In closing, I ask the Secretary of State some of the questions not addressed by his statement. What guarantee will he offer parents about the availability of vaccination slots for their children, in schools or elsewhere? What is he doing about those who peddle misinformation on vaccines, and will he bring in exclusion zones around schools? How does he plan to ensure that parents can get lateral flow tests for their children? When does he intend to publish the interim findings of the Bradford air purification trial? What confidence has he that 7,000 devices are enough—and why? Can he confirm that they will not be available until the end of February and that he expects children to sit in classrooms with open windows, in their coats, in winter?
Has the Secretary of State spoken to the Chancellor, who said last summer that he had “maxed out” on supporting our children and refused to fund the recovery plan that Sir Kevan Collins recommended? What advice has the Secretary of State had on whether face coverings would still be necessary if vaccination levels among children were higher and ventilation better? Can he explain why he is unable to tell the House today how many retired teachers and others have come forward to help in classrooms following his last-minute call? What guarantees can he give students with exams this month and later this year about whether they will go ahead? Lastly, but most importantly, when does he plan to  return to this House to set out the ambitious recovery plan for our children’s disrupted education that they so richly deserve?

Nadhim Zahawi: I fear the hon. Lady has very little experience of operationalising anything, given the way she has attempted to misrepresent the efforts we have made to ensure that schools are safe and hygienic. She omitted the fact that we have delivered 350,000 CO2 monitors to our school system. That has allowed us to be confident that, where schools are able to ventilate, they are doing so and therefore do not need the air purifiers. Where schools do need additional help, those 8,000 air purifying devices are going out as of next week, especially to special needs and alternative provision settings, which as she knows are the most vulnerable, and to all other schools that cannot mitigate the problem of ventilation in the classroom.
There has been some corroboration of that modelling by Teacher Tapp, which I am sure the hon. Lady will look at in her own time online. If we take the 350,000 CO2 monitors and look at the data reported back from schools and which schools have had issues, 8,000 air purifiers is a similar number to the one derived there.
The hon. Lady asked about lateral flow tests. She heard from the Prime Minister earlier that we have trebled the number of lateral flow tests going out, from 300,000 a day to 900,000 a day, and supply from 100 million a month to 300 million a month, but in her response to my statement, she unfortunately chose to traduce a testing infrastructure that is probably the best of breed in the world.
On retired teachers, again operationally, it is a bit difficult to say as we have had only one day of school. I need to wait until the end of the week at least before I can talk to the agencies and hear exactly how many teachers and temporary staff have been needed. I will happily share that information with the House, but, alas, the hon. Lady has clearly not had much experience of operationalising.
Some £5 billion is going into catch-up and there will be 6 million tutoring sessions. By any measure, that is a massive scale-up of tutoring. Half a million training opportunities will also be available—we cannot have a great education without having great teachers—and £5 billion will go into that.
The hon. Lady asked about vaccination. I can report to her that the school age vaccination programme will begin vaccinating in schools again as of Monday, as I mentioned in my statement, which she chose to ignore. Parents can also book online, go to GPs or walk-in centres to have their children vaccinated. We already have over 50% vaccinated.
Finally, on exams, vocational exams scheduled to take place in January will go ahead, because those students have worked hard studying for them and they deserve to be able to take those exams. Those who may be down with omicron and need to self-isolate will be able to get in touch with their awarding bodies and have their exam rescheduled. In the summer, we will also go ahead with exams, and rightly so, recognising that there has been much disruption to students’ studying, which is why we are doing it in two steps to go back to the rigorous grading of pre-covid pandemic levels.

Jonathan Gullis: I welcome my right hon. Friend’s statement and thank teachers, lecturers and support staff across Stoke-on-Trent North, Kidsgrove and Talke for their heroic efforts in getting kids tested on the first day back as well as for promoting getting the vaccine and I join them in those calls. I wait by the phone to be called into the classroom on either a Thursday or a Friday sometime soon.
I am delighted to hear my right hon. Friend’s reassurance about exams. Can we hear from the Secretary of State one more time that there is no plan B for the summer, just plan A, so that teachers, parents and pupils have the confidence that exams will go ahead as normal, and that we will get back to the exam structure to which everyone is so desperate to return?

Nadhim Zahawi: I can absolutely give my hon. Friend that assurance.

Valerie Vaz: I wish a happy new year to you, Madam Deputy Speaker, and to all colleagues.
Given that there is a break in Ofsted inspections, could the Secretary of State speak to Ofsted about having some of the inspectors return to the classroom, making their inspections more efficient in future?

Nadhim Zahawi: I am grateful to the right hon. Lady for her question. Just to be very clear, for this first week, because secondary schools are conducting the tests that we have asked them to do for the students’ return, there will be an Ofsted inspection break. Schools can also request a deferral if they have high absenteeism. Moreover, practitioners who are currently heads of schools and also inspectors will not be asked to carry out inspections when Ofsted returns to inspecting after this first week. Equally importantly, because of the safeguarding requirements for children in social care, inspections will carry on as normal.

Desmond Swayne: Is it proportionate to test asymptomatic children, and then, when they are negative, to mask them up anyway? Will my right hon. Friend publish the study to which he referred during his statement about those schools that had lower absences during the autumn?

Nadhim Zahawi: I am grateful to my right hon. Friend for his question. We have today published that report of evidence, and I will happily send him a copy of it after this statement.

Meg Hillier: When school pupils had to have laptops, the Government stepped in, but in future years schools are having to replace laptops out of their own funding. With the catch-up teachers—the retired teachers—coming back, who is funding them and how long will that funding continue?

Nadhim Zahawi: I mentioned in my statement the covid fund that we have made available, which we have extended further, so schools that need additional support in terms of temporary staff have access to that fund.

Steven Baker: It is very much to my right hon. Friend’s credit that he has published the evidence as he promised he would on talkRADIO on Monday. However, as I think I have just demonstrated, these face masks are an incredible inconvenience to  us all, and they are an especially harsh imposition on children. I do not have time to put all the caveats in the data on the record, but does he accept that that data needs a lot more work to be really conclusive, and therefore will he really be looking to end this imposition absolutely at the first possible moment?

Nadhim Zahawi: Not a day longer than necessary.

Stephanie Peacock: Just before Christmas, I received an email from a local teacher who said that his experience in the classroom was that schools are at breaking point due to serious underfunding issues. As a former secondary school teacher, I can only imagine how difficult it has been for schools over the past two years. Given that 20 primary schools across Barnsley East are receiving less funding in real terms than five years ago, what investment are the Government going to put into Barnsley schools to help them through this incredibly difficult time?

Nadhim Zahawi: I remind the hon. Lady that at the spending review settlement we achieved a funding settlement for schools of £4.6 billion, which school leaders, certainly those I spoke to, welcomed.

Angela Richardson: I welcome my right hon. Friend’s statement. I thank him and his ministerial team, and the officials at the Department for Education, for working tirelessly throughout the Christmas break to get our children back to school. Labour has repeatedly flip-flopped and muddied the waters for parents on the safety of schools remaining open to pupils. Speaking as a parent myself, can my right hon. Friend confirm categorically to me, to my constituents and to every parent in the country that every step is being taken to keep schools safely open?

Nadhim Zahawi: I thank my hon. Friend for her remarks. It is a huge team effort by many of my brilliant civil servants in the Department, and of course the frontline teachers and headteachers, but also the support staff in schools. We must never, ever forget that the support staff in schools have done an incredible job; they have gone above and beyond. It is absolutely clear to me that the best place for children is at school learning with their friends, classmates and inspirational teachers. We saw that in the Children’s Commissioner’s brilliant Big Ask survey, to which half a million children responded: they said they wanted to be back at school. It was brilliant teachers who helped me when I came to this country without a word of English. So I will do everything in my power to make sure that schools, colleges and nurseries remain open and that we begin, I hope—I have said this many times at the Dispatch Box—to be the first major economy to demonstrate to the rest of the world how we transition this virus from pandemic to endemic and live with it in the future.

Munira Wilson: We have known since early on in the pandemic that air purifiers are one of the most effective and cheapest ways of reducing covid transmission in the classroom, as shown by countries such as the US and Germany, which implemented them many, many months ago. The Secretary of State’s defence today for the very belated announcement of only 8,000 air purifiers for over 300,000 classrooms in England is  that they do not need them. Will he publish the data from the CO2 monitors that show that only 8,000 classrooms need them? Why is his Department recommending Dyson air purifiers when actually there are far cheaper ones available on the market?

Nadhim Zahawi: I think it is worth just taking a step back. We delivered 350,000 CO2 monitors. The majority of schools did not report any issues with the atmosphere in the classroom. The reason why we ordered 8,000 purifiers was that the data we received, the feedback from those schools using their CO2 monitors, demonstrated to us that there are probably classrooms that cannot mitigate easily and will therefore need air purifiers. That is the funnel that we go through, otherwise we waste public money—taxpayers’ money—on buying 300,000 air purifiers for classrooms that simply do not need them. I am sure the hon. Lady can understand that.

Munira Wilson: Why Dyson?

Nadhim Zahawi: Why Dyson? Because my civil servants also set up a marketplace for other schools that want to buy air purifiers, and they have looked at what is available in the market and recommended more than just the Dyson brand in that marketplace.

Andrew Murrison: Happy new year to you, Madam Deputy Speaker. My right hon. Friend’s statement is very much to be welcomed. He is right to point out, however, that masks are not a cost-free option. What evidence does he have about their effectiveness, particularly since the evidence from the US suggests that the effectiveness of masks varies from 98% for an N95 respirator down to about 25% for a three-layer cotton mask? If he is insisting that children wear masks, he is presumably also contemplating the sort of guidance he should issue about the constitution of those masks and how they should be worn to ensure maximum effectiveness at preventing transmission.

Nadhim Zahawi: Masks are one of a number of mitigations. The most important mitigation is the vaccine—that is indisputable, whether it is the first two jabs or, now, the booster campaign—and then the testing we are conducting in secondary schools this week, which I have just described, and in other settings as we have guided. I have today published the work we have done on masks, and it has been referred to in the House; I will share that with my right hon. Friend as well. That work is based on an observational study that we conducted in the Department of 123 schools where they rigorously applied the wearing of masks. By the way, we have supplied the masks so that schools have them available and are able to make them available to their students as necessary.
However, in the face of a highly infectious variant, masks are one mitigation that I thought was necessary, based on that observational study and the recommendation from UKHSA, including some of the evidence from places such as Germany and elsewhere. It is something that I did reluctantly, because the challenges around learning are evident as well, and I want to keep them for as short a time as possible, just as we begin to—I hope—get through the bumpiest of the next couple of weeks with omicron.

Lilian Greenwood: I am sure that I am not alone in hoping that when the Secretary of State next replies to questions from the shadow Education Secretary, my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson), he drops the rather patronising tone he took.
The Secretary of State has asked all university students to test themselves before returning to campus, which is very welcome, especially in Nottingham, where we are very proud to be home to 60,000 university students. I know that those students will want to do the right thing to protect themselves, their housemates, university staff and the wider community, but with a national shortages of tests, can he explain how he will guarantee that they are able to do that right thing and test before they come back to Nottingham?

Nadhim Zahawi: Nottingham has much to be proud of: not only its students getting themselves vaccinated—over 90% of university students have now taken the vaccine, and I thank them for doing so—but being home to the largest manufacturer of lateral flow tests in Europe, which the Prime Minister spoke about earlier.
One of the ways in which we have mitigated and made sure that we deliver more lateral flow devices is by trebling the number. We used to deliver about 300,000 a day: we have increased the delivery infrastructure so that we can do 900,000 lateral flow devices a day. I recommend that people refresh the website so that they can order their devices. On supply, we have gone from 100 million to 300 million a month. As the Prime Minister mentioned, we probably have the largest testing infrastructure in Europe.

Steve Brine: Happy new year, Madam Deputy Speaker. The Secretary of State knows that I do not like the classroom mask mandate one bit. What so many constituents who have contacted me have said—this saddens them and puzzles me—is that we are again holding children to a different standard from the one for the rest of the population. There are masks in classrooms, so why not masks in every single office where people have to go to work? We are testing, testing, testing our children; that has an impact on them and their mental health. Where does he see that in six months’ time or in 12 months’ time when they return after next Christmas? In short, I am asking him: what is his exit strategy for schools from covid?

Nadhim Zahawi: I remind the House that it is guidance —rather than mandate—on mask wearing in communal parts as part of plan B, which we announced at the end of last year, and now on wearing masks in secondary schools in the classroom. My hon. Friend mentioned the unfairness of this. I agree—I hope my statement struck the right tone—about what children have had to endure over the past two years because of the pandemic. However, I remind the House about a slight difference: we are asking people to work from home wherever possible, so they do not need to go into the office at present, but we want to children to be in school, in a classroom, learning, because we know that that is the best place for them—for their education and for their mental health.
Our plan is clear. As the Prime Minister set out, we will review all the plan B measures on 26 January—in fact, they will sunset then—and I hope that, by then, as we see more evidence, which at the moment, clearly  demonstrates that the Prime Minister was absolutely right not to go any further and lock down the country at Christmas or in the new year, we will be one of the first major economies in the world to demonstrate how we transition this virus from pandemic to endemic. I hope that we will get back to what normal life looks like for students as well as for the rest of the economy.

Rachael Maskell: I want to return to the issue of exams and assessments. Young people have a real sense of fairness. When they are seeing some areas of the country where infection levels are incredibly high and other areas where these are lower, they are concerned that there will not be equality across the country to demonstrate their ability and for their futures. How will the Secretary of State ensure that every single child will have their assessment in such a way that their full ability will come to the fore?

Nadhim Zahawi: I am grateful for the hon. Lady’s important and thoughtful question. We are doing several things. As I have made clear, we are going back to examination. Exams will take place this month—some of the vocational examinations that are coming through—and then in the summer. I spoke about our work with the regulator, Ofqual, on recognising the disruption to students’ learning because of the covid pandemic. Through Ofqual, we will also share advance information with teachers and schools so that we, again, recognise the challenges around exams this summer for students. As I mentioned, we will go back in two steps to pre-covid grading, recognising the challenge that students have faced.

Greg Smith: It is vital that schools remain open and I warmly welcome my right hon. Friend’s clear determination to keep them open. I share, however, the concerns of other hon. Members who have spoken about the mask mandate, which I believe will cause harm to all children in terms of concentration, their educational development and social interactions. There are some for whom that impact will be even more severe. A teacher in my constituency wrote to me earlier today to say that three of the pupils he teaches are partially deaf and depend entirely on lip-reading. He tells me:
“Their experience over the next few weeks will be awful as they are denied normal interactions”.
What can my right hon. Friend say to those children to ensure that they will not be left behind?

Nadhim Zahawi: I am grateful to my hon. Friend for raising an important point. I remind the House that when teachers are standing at the front of their classroom, they are not required to wear masks, and those students who are deaf and rely on lip reading will obviously continue to be able to learn. Nevertheless, it is an important point that a number of children will be unable to wear masks, whether because of a disability or otherwise, which is why it is guidance and at the discretion of teachers and school leaders. We trust teachers to do the right thing on this.

Ellie Reeves: The importance of ventilation in schools was first highlighted in spring 2020, yet it has taken until 2022 for the  Government to offer just 7,000 air-cleaning units when there are well over 20,000 schools and 300,000 classrooms in England. Schools in my constituency are doing a brilliant job, but I have seen an email from one school asking children as young as four to come to school in extra layers so that the windows can be kept open in winter. Is not the Government’s failure to get to grips with ventilation in our schools another example of them treating our children’s education as an afterthought?

Nadhim Zahawi: I thank the headteachers, teachers and support staff in the hon. Lady’s constituency for their work. Teachers have gone above and beyond. Some 99.9% of schools were open at the end of last term and we are seeing similar numbers now that are determined to stay open and be a place of enrichment for young people.
I will not repeat myself, but we have roughly 24,300-plus schools and we have sent out 350,000 CO2 monitors. The feedback from the majority has been that they do not need air purifiers. When we did the modelling, we thought that they would need roughly 8,000, which is what we have. The first ones go out next week. That is the right, proportionate and cost-effective way to deal with it.
By the way, the 350,000 CO2 monitors cost £25 million of taxpayers’ money. We are stewards of taxpayers’ money; we have to be responsible in how we support schools to remain open and do what they do brilliantly, which is educate young people.

Felicity Buchan: My constituents, old and young alike, believe that it is of paramount importance to keep schools going, no matter the circumstances. I welcome my right hon. Friend’s statement and its clarity, which is in big contrast to what the Opposition have done during the pandemic, which is to sow confusion with their flip-flopping about whether schools should be open.

Nadhim Zahawi: I hope that the shadow Front-Bench team will continue to think about their position and change their mind.

Kevan Jones: May I wish you a happy new year, Madam Deputy Speaker? I also thank the Secretary of State for his statement. Local directors of public health have been important in the fight against covid, especially in schools in earlier waves. My hon. Friend the Member for York Central (Rachael Maskell) raised with the Prime Minister the issue of real-time information getting to local directors of public health. Clearly, he did not give her an answer—he never does to anything—so I ask the Secretary of State directly whether he can give an assurance that the information from the testing that is going on in schools will be given in a timely way to local directors of public health, who can react to it to assist schools to drive down break-outs where they occur.

Nadhim Zahawi: The right hon. Member raises a really important question. This week, I deliberately had a Zoom meeting with pretty much all local directors of public health—more than 200 attended—because I wanted, first, to thank them, and secondly, to hear from them what they are seeing and picking up on the ground and  to get that evidence. It is important for me and my team to ensure that we have that communication. I will go further and say that it is about local directors of public health working with school leaders, and the communication must be absolutely paramount. That is why I wanted to have that conversation directly with the directors so that they could hear from me how important they are in this whole endeavour. Local doctors who are responsible for public health are equally important.

Mark Pawsey: I congratulate the Secretary of State on the work that he, his team and the entire teaching profession have done to keep our children in the place that is best for them, which is in the classroom, learning. So many children have fallen back over the past two years. The Secretary of State spoke earlier about the plans to enable catch-up; will he say a little more about when we might be able to implement them?

Nadhim Zahawi: Absolutely. We managed to secure further funding in the spending review, so the total amount of funding going into catch-up is now just short of £5 billion—I think it is £4.9 billion. Those students who have the least time left in education—that is, 16 to 19-year-olds—are getting, in effect, an additional 40 hours of education, because it is important that we focus on their catch-up. Secondary and primary schools focus very much on disadvantaged students.
The major tutoring programme through which we are delivering 6 million tutoring sessions, each of which is, in effect, 15 hours of tutoring for those kids, means that we are seeing a real difference in outcomes. Tuition used to be the luxury of the very wealthy, but we want to make sure that every child has it available to them and I want parents to make sure that they ask schools what they are doing about the additional tuition that we are making available.

Jim Shannon: I thank the right hon. Gentleman for his positive statement. What discussions have been held with the devolved Administrations and the Northern Ireland Assembly to ensure that the focus is on ensuring that children—particularly those with big exams coming up, whether GCSEs or A-levels—are taught at school? Furthermore, will additional funding be available for schools to run catch-up classes as and when they are needed?

Nadhim Zahawi: I mentioned earlier the funding settlement in the SR, and when I talk to school leaders, they say that they think that has been a good outcome for us in education. Of course, I also spoke about the £5 billion of catch-up funding. We are sometimes in danger of getting into an arms race in respect of how much we can announce, but my focus is on output: how many children have we managed to get to catch up, whether through the tuition partners scheme or any of the other schemes I have mentioned?

Luke Evans: I am grateful for the Secretary of State’s answer to my hon. Friend the Member for Rugby (Mark Pawsey) about the £4.9 billion for catch-up. Going forward, there is an opportunity to make sure that we get our pupils in front of teachers, and one way to do that is to extend the school day. The idea was raised with the Secretary of State’s predecessor, my right hon. Friend the Member for South Staffordshire  (Gavin Williamson), and the Chair of the Education Committee, my right hon. Friend the Member for Harlow (Robert Halfon), is a big advocate of it. Is my right hon. Friend the Secretary of State considering taking the idea forward as a long-term plan to make sure that pupils really are educated to the best of their ability?

Nadhim Zahawi: That is what we are doing as part of catch-up for 16 to 19-year-olds, who have the least time left in education and therefore in effect face the greatest challenge because of covid. I have also said at the Dispatch Box previously that because of our research capability in the Department we now know that the average school day is 6.5 hours; I would like those whose days are below average to move towards that average. I will always look at what the high-performing schools and multi-academy trusts do to deliver additional work, and not just academic work. The Minister for School Standards is looking at all the other things that deliver a rounded, healthy individual who becomes a brilliantly capable adult.

Ben Everitt: Happy new year, Madam Deputy Speaker. We all agree that there is nothing better for attainment and learning than keeping pupils in school, but will the Secretary of State assure me that mental health has been considered in his priorities for keeping schools open? As the Milton Keynes youth cabinet highlighted to me a few months ago, there is a potential mental health time bomb from children losing the structure of a school day, so will he confirm that it is our absolute priority to keep schools open?

Nadhim Zahawi: I am grateful to my hon. Friend for his incredibly important question. He cites the Milton Keynes feedback that he has received. Half a million children responded to the Children’s Commissioner’s Big Ask survey, including 2,500 children of Gypsy and Roma families and 16,000 children with special educational needs and disabilities. This generation is not a snowflake generation—it has been a pretty resilient generation through covid—but, actually, one thing the children cite very clearly is the impact on their mental health of schools not being open, and obviously being available only for the most vulnerable children and children of critical workers. I think that was a painful lesson for us to learn. I will never want to repeat that, and I will do everything in my power to keep schools open.

Eleanor Laing: Finally, I call Ben Bradley.

Ben Bradley: Thank you, Madam Deputy Speaker. It is a shame to find myself bottom of the class, but I guess I must try harder.
I welcome the Secretary of State’s statement and his commitment to keeping schools open, which will be really important to parents in my constituency. It is not without its challenges, but given what we know about the lower heath risk to children and the emerging evidence about perhaps the less severe impact of the omicron variant, arguably the biggest challenge is staffing, which is why some of the measures he took over Christmas are so important.
I have two questions. First, could the Secretary of State tell my residents whether his scheme to promote people coming back into classrooms is still open, and if so, how can I encourage my constituents to sign up or where can I encourage them to sign up? Secondly, along with teachers, support staff are clearly hugely important—at Mansfield council, we have found shortages of cleaners and all sorts of other very important roles in schools—so has his Department considered what support or advice he might offer schools about those roles?

Nadhim Zahawi: My hon. Friend is certainly not bottom of the class. His experience of local government and his contribution to national Government are exemplary. That was a very good double question. On the first question, we have set up a dedicated site where people can register, inquire and come forward, and then be signposted to local agencies in their area to be able to sign up. On his second very good question, I am also looking at and monitoring support staff absenteeism because of the omicron virus, because they are equally important in making sure that our schools continue to remain open for face-to-face education.

Eleanor Laing: Thank you. The House is very grateful to the Secretary of State. We now come to the next item of business—she said slowly, in order to allow a dignified exchange of personnel while keeping social distancing. I think we have achieved that now.

UK-Australia Free Trade Agreement

Eleanor Laing: I call the Secretary of State for International Development—[Interruption.] Oh, I beg the right hon. Lady’s pardon. I have just called the wrong Secretary of State. Take two: I call the Secretary of State for International Trade.

Anne-Marie Trevelyan: Thank you, Madam Deputy Speaker. In a former incarnation, I was indeed in that other role.
I am really delighted to be able to report to the House that, just before Christmas, the Australian Trade Minister, Dan Tehan, and I signed a comprehensive free trade agreement between the United Kingdom and Australia. This agreement deepens our bond of common values and a shared belief in the combined power of democracy, free trade and high standards. This is the first new trade deal the UK has negotiated from scratch since leaving the European Union. It is truly a world-class partnership, allowing our businesses to trade and invest more freely.
The deal will uphold high standards and foster collaboration on challenges such as tackling climate change, unfair trading practices and growing the low-carbon economy, going further than ever before in many important areas and showing what we can do as an independent trading nation. It eliminates tariffs on 100% of UK exports, and includes flexible rules of origin, meaning that UK businesses can use some imported parts and ingredients, and still qualify for the new 0% tariffs when exporting to Australia. It gives UK firms new legally guaranteed access to bids for over £10 billion of Australian Government contracts on an equal footing with Australian firms. It provides unprecedented new opportunities for young Britons to live and work in Australia, and it paves the way for the UK to join the comprehensive and progressive agreement for trans-Pacific partnership, or CPTPP, which would further open 11 markets worth £8.4 trillion in GDP for British exporters and investors. Accession to the CPTPP could see 99.9% of UK exports being eligible for tariff-free trade with some of the biggest economies of the present and future, from Japan to Mexico, and from Canada to Indonesia, Malaysia and Singapore. Unlike EU membership, it would achieve that while allowing us to continue to keep control over our laws, our borders and our money.
This deal is expected to increase trade with Australia by more than 50%. It is expected to add £900 million to household wages, and to deliver a boost for the economy of over £2 billion by 2035—compared with what we would see if we did not have a deal—benefiting communities and helping to level up every region and nation of our United Kingdom.
The agreement that I have signed delivers for the whole of the Union. The economies of Wales, Scotland and Northern Ireland are estimated to benefit from a combined boost of £200 million, and the economic impact assessment that we have published shows that the west midlands, the north-east, the north-west, the south-east, the south-west and Wales are set to see the biggest proportional gains. The deal will benefit Scotland’s financial services industry, boost innovative aerospace design and manufacture in the west midlands, provide new opportunities for Welsh fintech companies, allow  Northern Ireland’s manufacturers to export more competitively, and help car makers to support thousands of jobs in the north-east.
The agreement means that Australia will remove tariffs from all its UK imports, making it more competitive for the 15,300 UK businesses who currently export iconic products such as Jaguar and Aston Martin cars, Scotch whisky, London gin and UK fashion to Australia. It will encourage new companies to enter the market, including small businesses and family-run firms which will find it easier, cheaper and faster to sell their fantastic goods and services to Australia for the first time. It also delivers for consumers. The removal of UK tariffs on Australian favourites such as Jacob’s Creek and Hardys wines will help to keep prices down. UK manufacturers will benefit from cheaper access to important Australian machinery parts, allowing them to be more competitive and to grow.
The agreement means that investing in Australia will be easier than ever before. It more than quadruples the threshold that UK investments need to meet before being subject to review by Australia’s Foreign Investment Review Board, which will help to save time, save money and cut red tape. The UK’s world-class services industry will now have unprecedented and legally guaranteed access to the Australian market, allowing UK legal and engineering firms to compete on an equal footing with domestic firms in Australia.
Ambitious tech start-ups, financial services firms and the creative sectors will benefit from new opportunities to trade digitally. The agreement secures the free flow of data while locking in a legal requirement for personal data protection in both countries, guarantees fair access to Australia for telecoms companies, and forges greater co-operation on 5G and cyber-security. It includes the world’s first dedicated innovation chapter in a free trade agreement, establishing a strategic innovation dialogue to ensure that the deal keeps up with technological developments and drives the commercialisation of new technologies.
Our British businesses will also benefit from unrivalled new access to business visas, allowing staff to relocate more easily and travel more freely to work in Australia. It will enable Britons aged 18 to 35 to travel and work in Australia for up to three years, and they will no longer have to work on a farm to obtain a working holiday maker visa. Australian firms will no longer have to prioritise hiring Australian nationals over a British national. Additionally, executives and managers who are transferred to their company locations in Australia will have the right to stay for four years instead of two. They can also bring their spouses and dependent children, who will have the same four-year right to work.
The agreement has been crafted through consultation with UK businesses and interested parties at all stages of the negotiations. It offers a suite of arrangements going further than Australia has ever gone with any other country in a free trade agreement, which is a testament to the strength of our relationship and the hard work of my brilliant officials at the Department for International Trade and their Australian counterparts. It includes ambitious commitments to work together in addressing the shared challenges of environmental conservation, women’s economic empowerment and poverty reduction. It includes a commitment to maintain high animal welfare standards.
We have also secured protections relevant to the NHS and Australia’s health system in the agreement, which keep the NHS out of scope of the agreement. The NHS is not, and never will be, for sale to the private sector.
British food and drink is world-renowned for its quality, and this trade deal will deliver benefits to the industry—from tariff-free access to the Australian market to faster customs arrangements. The deal could see a wide range of iconic UK products, including Scotch whisky, Irish cream and Welsh cider, given protected geographical indication status in Australia. By creating new opportunities, this deal will help continue a trend of booming UK food and drink exports to Australia, which have more than doubled in the last decade. So we should be unafraid of fair competition and positive about the export opportunities that exist.
Let me also take the opportunity to alleviate the concerns of some colleagues regarding meat imports from Australia. The reality is that beef imports from Australia account for only a small fraction of our overall beef imports. Just 0.1% of all Australian beef exports went to the UK last year. Also, it is relatively unlikely that large volumes of beef and sheep will be diverted to the UK from lucrative markets in Asia, which are much closer to Australia. More than 75% of Australian beef and 70% of Australian sheepmeat exports last year went to markets in Asia and the Pacific—markets that we are also keen to grow in through our membership of the CPTPP.
With regard to animal welfare and food standards, we have been clear throughout this process that we will not compromise on our high standards, and we have delivered on that. All imports into the UK will have to comply with our existing food standards requirements—including the ban on hormone-treated beef. The deal also includes a dedicated chapter and non-regression clause on animal welfare. This will help to ensure that neither country lowers their animal welfare standards in a manner that impacts trade.
This agreement also supports the UK’s climate change commitments, reaffirming both parties’ commitments to all of the Paris agreement objectives—the first time that Australia has included a substantive climate change article in any trade deal. It also sets out areas for future co-operation on emissions reduction, zero emissions technology, energy efficiency and sustainable transport. So UK businesses will benefit from zero tariffs on all low-carbon exports to Australia, including of wind turbine parts and electric vehicles, creating more opportunities to grow the low-carbon economy.
The Government are committed to transparency and inclusiveness in all our future trading arrangements, and the House will now have substantial opportunity to scrutinise this deal in detail. We have already presented the full treaty text, a draft explanatory memorandum and the independently scrutinised impact assessment to Parliament, and we anticipate that there will now be a period of several months before the agreement is formally laid before Parliament for the 21 sitting days of formal scrutiny under the Constitutional Reform and Governance Act 2010, otherwise known as CRaG. That will allow ample time for the Trade and Agriculture Commission to prepare its advice, as well as for the International Trade Committee and International Agreements Committee to produce a report on the agreement, should they so wish. I have already written to the new Trade and  Agriculture Commission to seek its advice on the deal with respect to our domestic statutory protections for agriculture. That will help me to inform the Government’s own report on this issue, as required under section 42 of the Agriculture Act 2020. I also wish to highlight that any legislative changes required to give effect to the deal will be scrutinised by Parliament in the usual way ahead of ratification.
So this is a landmark agreement and will be a feature of the relationship between our two great countries for many years to come. As a newly independent trading nation, the UK is reaching out to seize the opportunities of the future—opportunities that we are uniquely well placed to take. The deal I have signed with Australia, one of our closest and most important allies, is just the latest chapter in our progress towards that brighter future, forging an open, enterprising economy, enabling us to build back better from the pandemic, and levelling up every region and nation of our United Kingdom.
I commend this statement to the House.

Nick Thomas-Symonds: I am grateful to the Secretary of State for her statement and for advance sight of it.
I would say at the outset that we on the Labour Benches are in favour of negotiating trade deals that benefit UK workers and businesses and promote our values around the world, and we will not hold the Government to impossible standards, but we will hold Ministers to what they have promised people they will deliver from the negotiations. Those promises make it even more important that Ministers show strength at the negotiating table and defend UK interests to the utmost. Other countries, in future negotiations, will look at what was conceded to the Australian negotiators and take it as a starting point.
We already have a UK-Japan trade deal that benefits Japanese exporters five times as much as it does UK exporters. A worrying pattern is emerging of not standing up for UK interests. It is what makes the Government’s failure in so many aspects of this deal so costly for the United Kingdom. The Government’s own impact assessment shows a £94 million hit to our farming, forestry and fishing sectors and a £225 million hit to our semi-processed food industry.
The Government claim that they are trying to mitigate that with tariff-free access being phased in over several years, but what is being done is totally inadequate. On beef and sheepmeat, the phasing-in period is 15 years, but the quotas being set by the Government for imports from Australia are far higher than the current level of imports. On beef imports, for example, when Japan negotiated a deal with Australia it limited the tariff-free increase in the first year to 10% on the previous year. South Korea achieved something similar and limited the increase to 7%. But this Government have negotiated a first-year tariff-free allowance of a 6,000% increase on the amount of beef the UK currently imports from Australia. On sheepmeat, in the first year of the deal, the Government have conceded a 67% increase in the tariff-free quota. Why did Ministers not achieve the same as Japan and South Korea?
Why have Ministers failed to ensure that Australian agricultural corporations are not held to the same high standards as our farmers? The Secretary of State mentioned animal welfare standards in her statement, but what the Government have agreed is a non-regression clause. To be clear, that does not mean that the standards will be the same in both countries. That is not fair competition. What will actually happen is that meat produced to far lower animal welfare standards will get tariff-free access to the UK market. So much for the promise of the Secretary of State’s predecessor that the Government had no intention of striking a deal that did not benefit our farmers. Is it any wonder that Australia’s former negotiator at the WTO said:
“I don’t think we have ever done as well as this”?
On climate change, which the Secretary of State mentioned, the COP26 president said, on 1 December, that the deal would reaffirm
“both parties’ commitments to upholding our obligations under the Paris agreement, including limiting global warming to 1.5°.”—[Official Report, 1 December 2021; Vol. 704, c. 903.]
But an explicit commitment to limiting global warming to 1.5° is not in the deal. Perhaps the Secretary of State can tell us what went wrong in those final days. Does the Secretary of State also accept that the failure to include that explicitly in this important deal damages the UK’s ability to lead on climate change on the world stage—[Interruption.] Ministers shout at me, but they told the House on 1 December that it would be included. What went wrong?
The Secretary of State has confirmed that she has asked the Trade and Agriculture Commission, as she is required to do, for advice on the impact of the deal on statutory protections for agriculture. Will she confirm when the Government’s own report will be available?
On scrutiny, why are the Government promising a monitoring report approximately two years after the agreement comes into effect, and every two years thereafter? Why not every year? In addition, the Secretary of State spoke about the impact of trade deals on the whole of the United Kingdom. Can she confirm what steps she will take to address any concerns raised by the devolved Administrations, and how she will formally involve them in the ratification process?
Tariff-free access to our UK market is a prize Ministers should not give away easily. However, looking at the concessions made by this Government, are people not right to worry that the Government are more interested in a quick press release announcing a completed deal than they are in standing up for UK jobs and livelihoods?

Anne-Marie Trevelyan: I am glad the right hon. Gentleman supports international trade, but I come away slightly less than enthused that he is genuine in that, and I hope we will be able to persuade him in the months and years ahead that the Government’s commitment to giving UK businesses the opportunity to share their incredible goods and services around the world is absolutely the focus of the work we are doing. I will try to cover all the points he raised, but if I miss any, I will be happy to write and confirm them.
On quotas, let us be clear—I highlighted this in my statement—that the vast majority of beef and sheepmeat being sold from Australia is going to the Asia-Pacific for the time being, and the quotas have been brought in  on a very clear and slow trajectory to allow our farmers to consider the markets. Really importantly, we are looking much more widely, and this is the first of what I hope will be many deals; indeed, this is about not only free trade agreements, but the removal of various barriers to exports—things such as the lamb export ban that has been in place with the US for over 20 years. Just before Christmas, we agreed that it would be removed so that our lamb farmers would be able to export some of the finest lamb in the world—I speak with a personal interest, from Northumbria farmers’ perspective—into US markets for the first time in two decades. So there are some really exciting things coming, and the Australia deal is the first of many deals that will afford our businesses, including our farmers, many new market opportunities.
On standards, the animal welfare chapter is the first one the Australians have ever done. Their commitment to moving forwards—as the right hon. Gentleman says, there is the non-regression piece—and to working with us is really important. In the same way that the environmental chapter does, that commitment shows their very clear policy objective as a nation to move forwards. The environmental chapter is, again, the first they have ever committed to, and in it they have committed to the Paris agreement. As we were in the final throes of the negotiations—I was very much involved, and it was a great honour, at COP26 with the President of COP26—Australia brought forward a net zero commitment, which is something that many have failed to do in Australian politics. That commitment, alongside this environmental chapter, shows a very strong commitment by the Australians to move forward on this issue. We will work together, not only as mutual friends and allies, but with other countries to help them meet their net zero commitment. That is a really important commitment.
This is a broad, liberal agreement; we talk about tariff-free access to the UK, but we also have tariff-free access to Australian markets. This is a broad, liberalising, fair and well-balanced trade deal between partners who want to work together as closely as possible in the decades ahead.

Mark Garnier: May I congratulate my right hon. Friend on her achievement in this trade deal? She is absolutely right that, despite the fact that we have signed 70 trade deals, this is the first ab initio trade deal that we have signed as an independent nation. I hope there will be many more agreements, including with the Kingdom of Thailand, for which I am the Prime Minister’s trade envoy.
My right hon. Friend rightly talks about the scrutiny process for these trade deals, and as a member of the International Trade Committee I can confirm that it is a fantastically complicated proposition to try to go through these deals. She mentioned three items that are incredibly important to the scrutiny process, but can she give a more specific indication of when we expect the Trade and Agriculture Commission report and the Government’s section 42 report and when the CRaG process will be triggered? Could she also consider publishing the Government’s negotiating positions in future trade deals, so that we can scrutinise and compare what is achieved against what was intended?

Anne-Marie Trevelyan: I thank my hon. Friend, who is a former Minister in the Department, for all his work and for his continued passion and commitment in driving  forward the UK’s opportunities to find these fantastic trade deals. He is now doing great work with Thailand, and it is interesting that we already have nearly £5 billion-worth of bilateral trade with Thailand. So many countries are knocking at the door saying, “We want to do more. We want to have better deals with you.” That is a really exciting and strong message. Now that we are on the global platform, those countries want to do that trade, because they know that we have the best businesses in the world and they want to have a close relationship with us. I think it is very exciting.
In answer to my hon. Friend’s question on parliamentary scrutiny, he is not wrong. It is a relatively complex journey that we are about to take with our first deal. We anticipate that there will be a period probably of several months before we lay everything before Parliament. We have asked the Trade and Agriculture Commission to crack on with its review, and once it reports back to me, I can submit the section 42 measure required by the legislation, and I hope that his Committee and the Committee in the other place will submit their own perspectives once they have had a chance to look through—I apologise for this, but in a way I do not—what is a very large tome of nearly 2,000 pages.

Alyn Smith: A good new year to you, Madam Deputy Speaker, and to colleagues.
I, too, am grateful for sight of the statement by the Secretary of State. Trade deals are the ultimate curate’s egg—there are things to admire and things to dislike in all of them. There are things to admire in this deal. I am grateful for that, and I welcome such progress as has been made. In the European Parliament, I was in favour of ambitious trade deals, and often found myself voting against the deals that had been negotiated because I thought that they could go further on environmental standards, human rights and climate change. In this deal, there really is a missed opportunity on climate change. It could have gone an awful lot further with one of the key countries in the world in the fight against climate change, and the standards could have been an awful lot higher.
I am struck, as ever, by the capacity of Government Members to become giddy with excitement about the upsides and hypothetical benefits of Brexit while ignoring the real-world consequences in the cost and heartache of leaving the European Union—in Scotland’s case, very much against our will. In the best-case scenario, taking the Government’s figures at their best, this deal will increase UK GDP by 0.08% by 2035. That is not nothing—and I welcome it—but the Office for Budget Responsibility, by contrast, has calculated that we will lose a full 4% of GDP. We need to look at that in the round, and Members need to see the deal in context.
This is not the last time that we will discuss this issue, so I will limit my remarks to agriculture and future scrutiny. I quote Martin Kennedy, the president of the National Farmers Union of Scotland:
“The final deal…shows a complete dearth of proper consultation with farming and food sector interests across the UK. While we are not against free trade, this deal appears to be very one sided, with little to no advantage for Scottish farmers”.
I could not have said it better. If covid and Brexit have taught us anything it is that indigenous food production across these islands—indeed, across this continent—and short supply chains are vital to our national security  and national resilience, however we define “national”. Anything that undermines that will be viewed with extreme scepticism by SNP Members.
On scrutiny, to what extent can anyone influence a deal that has already been signed? If the Trade and Agriculture Commission makes a recommendation against part of this deal, what happens? That is a genuine question. What input will there be for the Scottish Parliament, the Welsh Senedd and the Northern Ireland Assembly. If any of them says no to any part of the deal, what happens?

Anne-Marie Trevelyan: I am thrilled to hear that the hon. Gentleman is a supporter of ambitious trade deals, and I look forward to working closely with him in the months and years ahead as we continue to do many more. This is the first of many. It is an exciting, broad, liberalising trade deal for both parties, and I am disappointed that he thinks differently. Australia has for the first time ever agreed to an environmental chapter and made climate change commitments to embed in a treaty with us its commitment to the Paris agreement, which we all understand very clearly and which was reiterated at COP26 in Glasgow. The aim to keep 1.5 alive continues to be the commitment that the world makes. Australia has, as I have just said, made the commitment for the first time to a net zero strategy for its own nation. We should commend its effort to do that and its willingness to embed in a treaty with the UK—a world-leading nation when it comes to driving the environmental agenda—the fact that it wants to work closely with us to make sure that we make progress.
I am disappointed to hear about the views of a few in Scotland. I hope that as they have had the chance to read the document over the Christmas holidays, perhaps having a few days off for rest, because it is a weighty tome, they have discovered the safeguards that we have built in for farmers, which address some of the anxieties that were raised with us in extensive consultation with many partners throughout food and drink supply chains. They will find that those measures are robust and they should be reassured. I am incredibly proud of the indigenous food production that comes out of all parts of the United Kingdom. Scotland should be proud of its beef and Scotch whisky for instance, and I think Scottish producers will take great advantage of the tariff liberalisation on Scotch whisky.

Neil Parish: I also welcome this trade deal, because I think democratically it is of great importance, but of course indigenous food supply and making sure we maintain our high welfare standards are important not only to animal welfare but to keeping British farming competitive. Can the Secretary of State assure me that there is enough protection for British farming in this trade deal? When the Trade and Agriculture Commission comes forward with its findings, will she take heed and go along with them rather than, dare I say it, override them?

Anne-Marie Trevelyan: I thank my hon. Friend for his commitment as Chair of the Environment, Food and Rural Affairs Committee and also for his support of the free trade deal and indeed what international trade affords all of our amazing food and drink producers, who have some of the finest foods and drinks in the world.
To reassure my hon. Friend on the safeguards, which are as robust as they come, we have secured three levels of protection. The first, the tariff rate quota, sets a maximum level for tariff-free imports in the first 10 years; specific agricultural products are listed and anything above that would face a much higher tariff. The second level applies from years 11 to 15 of the agreement and is known as the product specific safeguard; it has a broadly similar effect, bringing high tariffs above a volume threshold. The third is a general bilateral safeguard mechanism, or temporary safety net, allowing measures to be imposed in the form of increasing tariffs or the suspension of tariff liberalisation completely under the agreement for up to four years, and they can be applied on all products liberalised under the agreement at any point to protect a particular domestic industry. I hope that reassures my hon. Friend.

Neil Parish: And on the recommendations of the Trade and Agriculture Commission?

Anne-Marie Trevelyan: Absolutely. We hope that the TAC review will give us a good report and we await that; this cohort is there exactly to answer some of the challenges and anxieties brought to us, and I am very hopeful that we will pass its examination well. In addition, going forward, as I mentioned earlier, we are opening up many other new markets for our farmers, not only because we want our indigenous food suppliers to thrive, but because we want to make sure the rest of the world can enjoy their products too.

Tony Lloyd: Happy new year, Madam Deputy Speaker.
The Secretary of State will know that at some point we will need to have a sanitary and phytosanitary agreement with the EU; that is in the interests of our agricultural community across the board, and in Northern Ireland in particular. Can she give an absolute guarantee that there is nothing in this agreement or any other negotiations she is contemplating that would put that SPS agreement at risk?

Anne-Marie Trevelyan: This agreement has a very detailed SPS chapter, and I would be very happy to sit down with the hon. Gentleman and ask the officials to talk him through it in more detail and reassure him accordingly.

Bim Afolami: I know that the Secretary of State cares a lot about services trade and the positive impact that that can have not just for Britain but across the world, and I welcome what she said in her statement about what is in this particular trade agreement. Will she set out in detail how she thinks this trade agreement is a step forward for services, particularly business and professional services, and commit to working with me and others outside the House over the next few weeks and months to strengthen our services offer in trade deals, not just this one per se but other deals that we are seeking to do in the coming months and years?

Anne-Marie Trevelyan: Absolutely. Our services sectors are second only in the world. They are a fantastic part of our export market, and we want to make sure that we showcase them in all the trade deals we do and find the best tools and opportunities to share them across the world. This particular deal, as I set out in my statement,  has a number of important mobility features to help provide certainty and longer continuity for those who want to move into these sectors. There is also a huge amount of opportunity through the £10 billion of Government procurement that is now available to UK businesses. This will continue to be a central part of every free trade deal that we look to arrange, and I am very happy to meet my hon. Friend to discuss it in more detail.

Sarah Olney: When we compare the original economic impact assessment of the Australia deal, which was released back in the summer, with the Government’s impact assessment published last month, we see that there has been a 1,000% increase in the estimated boost to UK GDP, but the small print makes it clear that that is because the Government have changed the economic model they are using to analyse the deal to one that produces a higher estimate of GDP. Can the Trade Secretary present any justification for this change, or is it simply a case of cooking the books?

Anne-Marie Trevelyan: Last year’s impact assessment was obviously a snapshot at the time. As the deal has continued to evolve from the agreement in principle back in June 2021, which was 12 pages of broad-brush direction of travel, the team has genuinely worked tirelessly. Working with a country in a different time zone, the team has worked through the night for many months to make sure that we drew this deal together. The continued development of all these areas has enabled us to review the original assessment. I am very happy for my officials to sit down with the hon. Lady to talk her through in more detail how we have reached this point. All these things are a moment in time, and we now have an assessment that I very much hope will be an underestimate as we see new business—we have been working on the basis of the existing businesses. We look to new businesses taking up the opportunities that this trade deal affords, so that we can grow our bilateral trade even further.

Martin Vickers: I welcome my right hon. Friend’s statement on this very encouraging agreement. She says that more than 15,000 companies already export to Australia and that she wants to encourage small family businesses to do so, too. I urge her to build on the excellent support that the Department gives to such businesses, as we need to encourage more businesses, particularly small businesses, into the export market. What will the Department do to enhance the existing service in that respect?

Anne-Marie Trevelyan: I thank my hon. Friend, who is an active and effective trade envoy to the Balkans. He raises an important point, and we have a great opportunity to help small businesses, which have fantastic goods and services, to take up the opportunities that these free trade deals will afford them and to find new export markets. The Minister for Exports, my hon. Friend the Member for Finchley and Golders Green (Mike Freer), has taken on that challenge with gusto.
With the export support service and a number of other tools, we are driving forward the opportunities that organisations such as the Federation of Small Businesses and the CBI provide to encourage businesses that have not yet tested the opportunity to export, so that we can share the amazing goods and services they produce with the rest of the world.

John Spellar: I welcome a trade deal with our allies, friends and family in Australia, especially for the motor industry. Along with AUKUS, I hope it will provide a renewed international democratic dynamic and closer working for more resilient supply chains in both goods and raw materials. I am concerned that Ministers may have been desperate to do any deal, rather than getting the best deal. If there are concerns about meat imports, will the Secretary of State press other Departments, the NHS and schools to prioritise local meat, just as every other country does?

Anne-Marie Trevelyan: I thank the right hon. Gentleman for his support and enthusiasm for this important deal with one of our closest allies and partners. Indeed, the AUKUS relationship is now developing and will be a very long-standing and close relationship, as we have had in many other ways. He raises an important point about local supply chains and the use of local goods, and I will make sure that that is passed on to my relevant colleagues.

Desmond Swayne: Might the worries of those who are concerned about the increase in quotas over the next 15 years be assuaged somewhat by the fact that existing quotas are largely unused?

Anne-Marie Trevelyan: My right hon. Friend makes an extremely important point. He highlights the fact that we should be reassured that our farmers have fantastic products that we will all, as UK consumers, want to continue to eat, and that indeed our Australian partners are keen to sell their products into the Asia-Pacific market, where there is a growing demand. We will also want to take up those market opportunities. That is why we are working very hard and very closely with those in the CPTPP to get an accession to that free trade group, because there we will have the opportunity to sell our fantastic produce to those Asia-Pacific markets too.

Kerry McCarthy: Happy new year, Madam Deputy Speaker.
Australia is the only country in the developed world on WWF’s list of global deforestation hotspots, and beef production is the No. 1 driver of this. In the great barrier reef catchments, 94% of land clearance is linked to it. It is destroying the habitats of threatened species, including the koala—and I am sure we would all want to preserve the koala’s habitats. Can the Secretary of State assure me that we will not, under this trade agreement, allow the import of more beef that is linked to deforestation? This morning we had a debate in Westminster Hall and the reassurances from the Minister there were pretty weak. Can she confirm that this will be something the Government try to uphold?

Anne-Marie Trevelyan: In this free trade agreement, the UK and Australia have committed to combat illegal logging and related trades, which, as the hon. Lady pointed out, is critical to the preservation of our natural environment and that critical biodiversity—an area that the UK has led on in the COP26 discussions led by Lord Goldsmith through the nature track in Glasgow. The environment chapter in this free trade agreement recognised the importance of sustainable forestry management, and it strengthens our relationship of co-operation and information sharing on a bilateral basis. We have also agreed provisions on promoting and  co-operating on the transition towards a circular economy in reducing waste that goes beyond the CPTPP arrangements that Australia has with its neighbours, alongside working in further areas such as air quality and marine litter. There is a really important starting point for the work that we will do together with Australia to ensure that deforestation becomes a thing of the past.

Duncan Baker: We have had another fantastic trade deal that epitomises the cornerstone of one of the reasons people voted to leave the European Union, which was to set our own independent trade policy. We have heard a lot about agriculture but not a lot about young people, particularly professional young workers. Will my right hon. Friend explain the benefits of this deal for those young professional workers who will now have easier access to the wonderful lived experience of working down under?

Anne-Marie Trevelyan: I thank my hon. Friend for his enthusiasm and for highlighting again just how important this deal is. This is the first deal that we have negotiated from scratch as an independent trading nation. It is a broad and deep liberalising trade deal that affords, among other things, the opportunity for young Britons—anyone still under 35; sadly, that is not me—to travel and work in Australia for up to three years. Historically, to be able to get that, they had to have a commitment to work in an agricultural environment, but that will no longer be the case, so our young people will be able to go anywhere in Australia for up to three years to take their talent and get the opportunities afforded to them in any area that they want. That is a really exciting development that will continue to build on the close relationship that we want to maintain.

Dave Doogan: Fair play to Canberra, because they have no’ half scored a great deal with this one. It must be delicious to have scored such a great trade deal over your former overlords in London. I look forward to the benefits that this will bring to Scottish distilling—gin and whisky—but if exports of lamb and sheep meat from Australia to the United Kingdom are so insignificant to the Australians, why did you not write them out of the deal, because it is what you are getting the most heat on—

Rosie Winterton: Order. The hon. Gentleman knows that he does not refer directly to the Secretary of State.

Dave Doogan: I beg your pardon, Madam Deputy Speaker. Why did the Minister not seek to write those exports out of the deal, and will she take a second opportunity to answer the question of my hon. Friend the Member for Stirling (Alyn Smith) about what she will do if she finds herself at odds with the devolved Administrations in the devolved nations? Will she simply ram through her agenda with the UK United Kingdom Internal Market Act 2020?

Anne-Marie Trevelyan: I am thrilled that the hon. Gentleman is so pleased for those Scottish food and drink producers, who I absolutely agree will have great opportunities. They are very exciting new market opportunities that those producers will, I have no doubt, take up with gusto.
Again, I reiterate that I am reassured by the safeguards we have brought in. The quota levels are built, but the existing quotas are not being used at all because the markets that Australia chooses to sell into at the moment—because the prices are better—are the Asia-Pacific ones, where there continues to be a growing middle class looking to have good-quality meat as part of their diet. I am looking forward to our ability to accede to the CPTPP, through which our farmers will also have opportunities to access those new markets.

Jonathan Djanogly: First, I welcome the Secretary of State’s very positive win-win attitude towards trade negotiations, as opposed to that of some others in this House. She mentioned visas, specifically for young people. Could she give the House a little bit more information about the projected numbers of workers likely to be going backwards and forwards, and the sectors they are likely to be involved with?

Anne-Marie Trevelyan: I will ask the team to write to my hon. Friend about the technical detail, because I do not have those figures to hand. However, really importantly, beyond the question of the opportunities that under-35s on a three-year visa have, being free to choose what they want to do when they go and work in Australia, that shift from a two-year visa to a four-year visa for executives and managers who want to work in any number of sectors—and, indeed, for their families to be able to work in Australia as well—is a huge opportunity for our workforce to go and enjoy Australian opportunities, and also to bring UK expertise to our great friend and ally.

Kevan Jones: I wish you a happy new year, Madam Deputy Speaker. From the enthusiastic way in which the Secretary of State is selling this deal, she has clearly been drinking a lot of the Prime Minister’s Kool-Aid, but no matter how much positive spin she puts on it, it is a bad deal for County Durham beef and sheep farmers, including those in my constituency. Those people are already struggling because of the restrictions that have come about because of Brexit, so I ask her what discussions she has had with her counterparts in the Department for Environment, Food and Rural Affairs about support for those farmers in years to come. In many cases, they are marginal anyway, and if they are opened up to worldwide competition from Australian lamb and beef, that will make their job 10 times harder.

Anne-Marie Trevelyan: I cannot speak for my colleagues in DEFRA, but I know that progress on the environmental land management schemes framework is developing at pace. That framework will be a really important tool to help our farmers make the right choices, not only about the food production that they choose to do, but about managing the environment that they are stewarding on our behalf as we move forward and—to the question of the hon. Member for Bristol East (Kerry McCarthy) earlier—make sure that we look after the biodiversity and the nature that surrounds us.
However, I disagree with the right hon. Gentleman that this deal is bad for his farmers, because there are great opportunities coming. As I mentioned earlier, the release of the lamb imports plan for the US is opening up a whole new series of markets, and as we continue to  do more trade deals and with the opportunities in Asia-Pacific, our amazing farmers will have opportunities to move into new markets that they have not had before. However, as I will continue to say and as the right hon. Gentleman knows, there is nothing like eating local. Our farmers continue to advertise and very successfully sell their products to the British markets too, and I know that my colleagues in DEFRA work very closely with farming groups to help ensure that happens.

Andrew Rosindell: What a great way to start 2022. I commend not only the Secretary of State and her predecessor, but the Australian high commissioner, the hon. George Brandis, who has been so passionate about the relationship between the two nations, and strongly support all the work that has gone on to make today possible and have this fantastic trade deal become reality. Is it not fantastic that this deal has been achieved? We were told that it would take 10 years to do any trade deal, and this has been done in a matter of just over a year. Does the Secretary of State agree that this is a golden opportunity in this year of the Queen’s platinum jubilee also to extend more trade and more co-operation to the Commonwealth, and other realms and territories? Please let us not forget that trade is not just within the United Kingdom; we have territories and dependencies for which we are also responsible, so can we make that a priority in the coming years?

Anne-Marie Trevelyan: I concur absolutely with my hon. Friend’s comments that the high commissioner, George Brandis, has been a huge advocate and supporter of the deal and indeed has assisted in some of the logistics challenges of carrying out, using mostly virtual methods, the very complex trade negotiations through different time zones to make sure that we were able to deliver this in an incredibly timely manner. That is reflected in the fact that both countries are very keen to build on their very close and long-standing relationships with what is one of the most liberalising trade deals that exists.

Tim Farron: I am passionate about free trade, and so are the farmers in Cumbria and so, I assume, are the farmers in Northumberland. No free trade is really free if it is not fair. When it comes to animal welfare, this deal clearly is not fair. I wonder whether the Secretary of State truly comprehends the astonishing difference in terms of animal welfare standards between farming, and livestock farming in particular, in her own community and in mine compared with Australia. There are staggering and astonishing differences in scale—the fact that we have close husbandry in this country and vast areas and no husbandry in Australia. Moreover, there is the lack of humane standards in abattoirs and also when it comes to the transportation of livestock. Surely this deal undermines our farmers, undermines the standards that we hold dear and throws our agriculture under a bus in order to get a cheap deal. How will she reply to her own farmers who will be as shocked and appalled as I am by much of this deal?

Rosie Winterton: Order. We need slightly briefer questions if we are to get everybody in. There is a ten-minute rule Bill and then business after that. If I am to get everybody in, we just need to speed up a little bit.

Anne-Marie Trevelyan: I will direct all our farmers who have concerns to the level of the safeguards that I set out earlier, which should reassure them, and, importantly, to the continuing growth in new markets of the opportunities for them to sell our fantastic UK produce to the rest of the world. The standards are very clear and the animal welfare chapter has set out, in a way that Australia has never committed to in any other trade deal, that non-regression and working together is the way to move forward. We have not looked at anything in the poultry, pigs and eggs sector precisely because we did not believe that we could find a level of compatibility in standards, but we are comfortable with what the animal welfare chapter sets out and that it will help us all move forward. Really importantly, our fantastic producers—in the case of the hon. Gentleman and me they are our sheep farmers who make some of the finest lamb in the world—should be excited at the prospect not only of this free trade deal, but of all the free trade deals and, indeed, the release of the US import ban for them to find new markets.

Mark Pawsey: The trade deal that the Secretary of State has announced is an excellent step to doing more business and increasing exports with Australia. It will be up to UK companies to take advantage of the new arrangements. Does she agree that, to do so, they will need first-class sales skills? Are we doing enough to improve those skills and get better at selling, and what advice, support, guidance and encouragement will there be to companies wishing to sell their products in Australia?

Anne-Marie Trevelyan: As part of our export strategy, which we launched at the end of last year, we have a number of tools in the toolbox to help those businesses that are either already exporting or that want to discover new markets and learn how to move their products into new markets to do so. I look forward to all colleagues wanting to work with their businesses and our teams to maximise those opportunities.

Daniel Zeichner: The Secretary of State started her statement by saying that she had signed a deal and concluded by saying that she had passed it to the Trade and Agriculture Commission for comment. Will she take a third opportunity to try to answer what she will do with the comments from the Trade and Agriculture Commission? Frankly, it is a bit like listening to the commentary on the Ashes series—interesting to listen to, but has no impact on the outcome. We were shafted at cricket and I fear we will be shafted in agriculture.

Anne-Marie Trevelyan: The Trade and Agriculture Commission is a group of independent experts who will review in detail the agricultural elements of the deal. I look forward to receiving its report, whence I will draw up my section 42 report and bring it to Parliament.

Greg Smith: New free trade deals are incredibly important for securing the future prosperity of our country, and I congratulate my right hon. Friend and all involved on securing this one. Agriculture is enormously important in my constituency, and I know that farmers will be reassured by her clear statement that all imports from Australia will have to meet our existing food standards. Although she gave  very low numbers of current imports from Australia, can she reassure the House that her Department will do everything humanly possible to bang the drum for British farmers to get more of our world-class produce to Australia?

Anne-Marie Trevelyan: We want to see our fantastic British produce sold around the world, including to Australians. As I mentioned, our teams working in the UK and around the world are there to help our farmers and those who want to sell British produce into those markets.

Bill Esterson: Happy new year, Madam Deputy Speaker. In the Committee stage of the Trade Act 2021, I tabled a series of amendments to include environmental chapters in all future trade agreements. The Government rejected all our amendments of that nature on the basis that such chapters would be included on a deal-by-deal basis, but that was not true, was it? The procurement chapter of the agreement specifically excludes the environmental chapter. As my right hon. Friend the Member for Torfaen (Nick Thomas-Symonds) said, the failure to include 1.5°, added to the exclusion of an environmental chapter, means that the Government have completely undermined in this trade agreement any commitment to tackling the climate crisis.

Anne-Marie Trevelyan: I am very proud that we have the environmental chapter in the free trade agreement, which sets out a mutual commitment to the Paris agreement. As I set out earlier, that was reiterated as meaning keeping 1.5° alive at COP26, where the Australians and we led the charge to ensure that we all work together to try to meet that challenge and maintain our climate.

Richard Graham: The new free trade agreement is another step forward in our commitment to the Indo-Pacific region, and I congratulate the Secretary of State. What are the next steps in our application to join the CPTPP and what progress has been made on a new framework for Government-to-Government contracts which, as she knows, is a live issue at the moment for at least one deal in the region?

Anne-Marie Trevelyan: The CPTPP process is in play. We put in our application last year and we are being vetted. I am not sure how best to describe it—it is a bit like passing a set of exam questions, and we have to submit our answers. We are in the final throes of that phase, which is good, and we hope to be able to move to market discussions in the very near future. In relation to my hon. Friend’s question about the new framework for Government-to-Government contracts, we are looking at those in detail at the moment and I will report back in due course.

Jim Shannon: I thank the right hon. Lady for the comprehensive positives in her statement, but I wish to reflect the concerns and opinions of the National Farmers Union and the Ulster Farmers Union—I declare an interest as a member of the latter. Will she outline how we can encourage our close friends and allies in Australia to produce meat products using the same high animal welfare standards that we in the United Kingdom of Great Britain and Northern Ireland are proud to stand for?

Anne-Marie Trevelyan: I thank the hon. Gentleman for his continued support of farmers in his constituency. In the animal welfare chapter, we have agreed a non-regression clause and a number of co-operation matters on which we will work with the Australians. We are clear that our standards are non-negotiable and that food coming into the UK must meet our food standards and safety levels, and that will continue.

Pensions (Extension  of Automatic Enrolment)

Motion for leave to bring in a Bill (Standing Order No. 23)

Richard Holden: I beg to move,
That leave be given to bring in a Bill to extend pensions automatic enrolment to all jobholders aged at least 18; to remove the lower qualifying earnings threshold for automatic enrolment; and for connected purposes.
As the Prime Minister said today at Prime Minister’s questions, what we have seen over the past few years—worked on since our time in opposition and introduced under the coalition Government—is a huge increase in pensions take-up among the British population. Now, 10 million more people are saving for their pensions than did before: an increase from 46.5% of the population saving in 2012 to 77.6% in 2020. By any stretch, that is a massive increase and a huge boon to people in our country who are saving for the long term.
Bringing forward the Bill is all about ambition—not mine, but the ambition of people to look after themselves, their families and their communities. I know many red wall MPs such as myself and my hon. Friend the Member for Sedgefield (Paul Howell) think about that. People are ambitious not just for themselves, but for the towns and villages they live in. In my patch, from Consett to Crook, Burnhope to Langley Park, they are ambitious for themselves, for their towns and villages and for those who live in them, their friends and neighbours. Many of those people are excluded from auto-enrolment purely because they do not earn enough money to be enrolled.
The other reason I mention ambition is that this measure is the Government’s stated aim. They have an ambition to start to extend auto-enrolment by the mid-2020s, but, as everybody who has ever seen some of those great comedy programmes will know, and I remember Malcolm Tucker saying it:
“‘Should’ does not mean ‘yes’.”
I really want the Government to say yes to this proposal. People need to know that it is going to happen. Business needs to be able to plan for it. Our country needs to feel long-term levelling up in action, and one of the best ways we can do that is to give people certainty that this is coming down the track and that their pensions will be there for them, providing for them.
I am grateful to Onward for its help in the past few months, working with me on the report it has published today on some of the specifics that the Bill will provide. The key is the extra £2.77 trillion that would be invested in our pensions for the lower-paid and younger workers who the Bill seeks to address. That money would be saved by people in part-time work or aged 18 to 22 who do not qualify for auto-enrolment.
I will give the House a couple of statistics to highlight why that is so important. At the moment, three quarters of those aged 22-plus are auto-enrolled into pension schemes, but under the age of 22 it is only 20%—and that is 20% of people in work, not students. That is a big difference, and the difference that auto-enrolment has made since 2012. For part-time workers, while some will earn more than the £10,000 threshold, auto-enrolment  is 57.8% compared with almost 90% of workers in full-time jobs. If we assume a similar take-up, the Bill could see an extra 30% of the part-time workforce auto-enrolled: millions of people, mostly women, and much more likely to be from ethnic minority communities, to be socially disadvantaged or to have other burdens on their time, maybe as carers. Those are the people the Bill seeks to address and make a difference for.
Where are those part-time workers? The analysis Onward has done shows exactly where they are. They are in places such as Workington in Cumbria, or Hyndburn in Lancashire, or Mansfield in Nottinghamshire, as well as large parts of the south-west, the midlands and the north-east and north of England. They are in areas of the country that seek that levelling up and transformational change more broadly.
I want to give a few short examples of the people that we are looking to help. A full-time worker on the national living wage would gain almost an extra £100,000 into their lifetime’s pension—a 60% increase on today. As for younger people, if the average person working full time on the living wage between 18 and 22 paid in just a few hundred pounds a year—literally a few pounds a week—in between those years, they would see another £25,000 in their pension on retirement. They would pay about £1,000 or £1,500 in and have £25,000 coming out, because compound interest would build up over 45 to 50 years. That will make a transformational difference to people’s lives in retirement.
This is the one that really gets me: workers with two part-time jobs. At the moment, people earning £9,000 for two jobs, maybe working 12, 16 or 18 hours a week in my constituency, do not get the real benefits of auto-enrolment at all. A woman doing two different jobs, juggling them around childcare, would see her pension savings triple under this proposal, from under £100,000 to £300,000. Think of the transformation to that woman, aged 65. With £300,000 she might be able to give a deposit to her kids and also have a much more comfortable retirement than she would with the savings that she has at the moment. The change that has been made so far by the Government through auto-enrolment and its expansion has been fantastic, but now we need to go that step further to help people who are the backbone of our country.
The big differences are also particularly stark because at the moment that woman earning £18,000 a year working two jobs does not get the benefit, but someone earning £180,000 does. She does not get that tax benefit, but that other person does. How can it be right that we give tax benefits to Members of this House or well-paid people across the country but not to people working part time? It just does not seem fair to me.
Before I wind up, I would thank the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), who is ill today so cannot be here, and the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), who is here in his place. We have talked about this, and I know that the Department have the ambition and are now looking at the idea. I also thank the Secretary of State and her team, with whom I have also talked about it.
I thank James Blagden and Will Tanner at Onward for the huge amount of work that they have put into the report over the past few months; it has been really  welcome in bringing out some of those key numbers and statistics. I would also like to thank Aviva who, with some of their actuaries, helped behind the scenes as well. That has been very welcome, because drilling down into some of the pension numbers and how they impact people over decades is sometimes very challenging.
If we want to level up for the long term, this is a serious piece of legislation that could make serious change. I sat recently in proceedings on a private Member’s Bill and the Pensions Minister stood at the Dispatch Box, and the hon. Member proposing some changes said that introducing those changes was initially thought of in 1978, and then in the late 1990s—and it is only now that they are being brought forward in a private Member’s Bill. I do not want this long-term levelling-up measure, which would benefit some of the lowest-paid in our society, to slip, too, because there is always a reason not to do it. The answer is that we must table legislation now so that business can prepare for the future. If we are to build back better after this covid pandemic, there is no better way, particularly to help low-paid workers, many of whom, in constituencies like mine, will have been working in the care sector, the retail sector or hospitality throughout this period. They are the ones who will directly benefit from the legislation.
This legislation would transform the lives of millions of working people—not in great jobs but in low-paid work—who are the backbone of our country. The Prime Minister said in the constituency of my hon. Friend the Member for Sedgefield that votes were lent to us at the last general election and we have to deliver for those people. I think the Bill is one of the clearest ways that we could do so, and I commend it to the House.
Question put and agreed to.
Ordered,
That Mr Richard Holden, Matt Vickers, Simon Fell, Gary Sambrook, Dehenna Davison, Paul Howell, Mark Jenkinson, Duncan Baker, Sally-Ann Hart, Antony Higginbotham, Dr Jamie Wallis and Mrs Natalie Elphicke present the Bill.
Mr Richard Holden accordingly presented the Bill.
Bill read the First time; to be read a Second time on Friday 25 February, and to be printed (Bill 221).

Public Service Pensions and Judicial Offices Bill [Lords]

Second Reading

Simon Clarke: I beg to move, That the Bill be now read a Second time.
Our public servants do so much to support this country, and over the past 22 months their efforts have been more vital than ever before. NHS employees have worked long hours on the frontline of the fight against the covid pandemic, in hospitals and in the community; teachers have helped their classes in the most challenging of circumstances; and our police, firefighters and armed forces have kept people safe and solved new, unforeseen problems throughout these difficult months. Just as public servants have supported the country during the coronavirus crisis, so it is only right that in turn the Government should support them, which is why the Government have introduced this Bill to make sure that public servants of all ages receive guaranteed rights in their retirement that are among the best available, on a fair and equal basis.
In addition, the Bill includes measures to help to address the resourcing challenges that face our judiciary, to ensure that it can meet the demands of both the present day and the future. The Bill also lays the foundations for new public service pension schemes for beneficiaries of the existing Bradford & Bingley and NRAM—formerly Northern Rock—pension schemes. Currently, those pensions reside under UK Asset Resolution, the holding company for those businesses.
Let me turn to the Bill’s details. I shall start with how it creates fairer, more equitable and more sustainable public service pensions. As Members will recall, in 2010 the coalition Government established the Independent Public Service Pensions Commission, chaired by Lord Hutton of Furness. The commission carried out a deep, structural review of public service pensions. Following the review, the Government accepted the commission’s recommendations as the basis of discussions with members and their representatives, and ultimately introduced a number of major changes. Pension benefits would be based no longer on an individual’s final salary but, instead, on career average revalued earnings. Member contribution rates were increased and the normal pension age was linked to the state pension age for all schemes, except those for the police, firefighters and the armed forces. The changes were fairer for low earners because they resulted in a more generous pension for many. In addition, the reforms were estimated to save taxpayers £400 billion over the next 60 years.
Before the implementation of the reforms in 2015, the Government agreed, after trade union negotiations, to allow those closest to retirement to remain in the legacy schemes. Members within 10 years of retirement in most public service pensions were allowed to remain in the final salary scheme instead of being moved to the career average scheme. This was known as transitional protection. However, the courts found in 2018 that this transitional protection discriminated unlawfully against younger public service scheme members. Although the legal challenge related only to the judicial and firefighter schemes, the Government accepted the need to remedy the position across all public service schemes. A thorough programme of work therefore followed, to identify and implement a robust solution.
Following public consultations in 2020 and Government responses last year, the Bill creates the framework to bring the remedy into effect. For the remedy period—that is, from when the reforms were implemented on 1 April 2015 to 31 March 2022—all eligible members will be given a choice between the legacy and reformed scheme benefits. Some members, especially lower earners, may be better off in the reformed schemes, so it is important that individuals get to choose which benefits they want to receive. For most members, that choice will be made at retirement, when it will be clearer which scheme is best for them. That is known as a deferred choice. There are three exceptions to this. The first involves members who have already retired. They will be given a choice once the necessary legislation and operational implementation are in place. The second involves the judicial schemes, where affected members will make their decisions in an options exercise to be held once the necessary legislative and data requirements are in place. This process is in line with the approach favoured by respondents to the judicial consultation. The third involves the local government pension scheme, which requires bespoke measures to reflect the unique features of that scheme. I intend to table amendments ahead of Committee stage to ensure that members of the local government pension scheme are also provided with a robust remedy. In short, these measures will ensure that all members of a public service pension scheme are treated fairly, whatever their age.

Richard Graham: The Minister will know that some of us have received correspondence from constituents suggesting, probably on the advice of their unions, that they will lose up to £500 a year when pensioned as a result of these changes. Can he confirm whether this is true? If it is not, what method can we deploy to reassure our constituents accordingly?

Simon Clarke: I thank my hon. Friend for his question; it is a good one. It is important to provide reassurance on this point. The McCloud remedy aims to ensure that where pension members are offered a different benefit to remedy the discrimination they have faced, they will be returned to the same financial position that they would have been in had they always been entitled to the benefits that they end up choosing. That reassurance should be clear. For the majority of individuals affected, there will be no change to the tax position. It is important to get on record that there will be no change for the vast majority, and that the Government will ensure that all the appropriate guidance is provided in good time so that people can make an informed choice and not worry about incurring any losses.
As well as giving our public servants fair treatment for the remedy period, the Bill will ensure that remains the case into the future. From 1 April this year, all the legacy schemes will be closed to future accrual. All eligible members will be placed in the 2015 reformed schemes or, in the case of the judiciary, moved to a new scheme. This guarantees that members within each scheme will be put on an equal footing. It also underlines the Government’s commitment to the 2015 reforms and the principles that underpin them. Those principles are greater fairness between lower and higher earners, fairness for the taxpayer, future sustainability and the affordability of public service pensions as a whole.
The Independent Public Service Pensions Commission also recommended that the new 2015 public service pension schemes should include a cost ceiling to protect  the taxpayer from unforeseen cost increases. However, the Government have chosen to go a step further in establishing a symmetrical cost control mechanism. This will not only protect the taxpayer from unforeseen increases in pension scheme costs but protect the value of pension schemes for members when costs fall.
On how the remedy in the Bill will interact with the cost control mechanism, it will give members a choice between two sets of benefits and allow them to choose which will be better for them. The result is an increase in the value of schemes to members, and, as is usual, this is managed through the cost control mechanism. Crucially, however, to ensure that no members’ benefits are cut as a result, the Bill includes a measure to waive any result from the 2016 valuations that would otherwise have led to benefit reductions. That goes to the point made by my hon. Friend the Member for Gloucester (Richard Graham). In addition, the Government have committed to honour any benefit increases that are due.
Hon. Members will be aware that, in the light of concerns that the cost control mechanism was not operating as originally intended, the Government Actuary was asked to conduct an independent review of this particular element. Following that review, and a public consultation last summer, the Government confirmed that three changes would be made to the mechanism. All three changes are recommendations from the Government Actuary.
The first change is to implement a reformed scheme only design. This means that the cost of legacy schemes will no longer be included in the mechanism. The second is to widen the margin of the cost corridor, which triggers a correction, from 2% to 3% of pensionable pay. The third change is to introduce what is called a symmetrical economic check. This economic check will ensure that any breach of the mechanism is implemented only if it would still have occurred had the impact of changes to long-term economic assumptions been considered. These reforms will make the mechanism more stable and ensure that it operates more in line with its objectives of protecting the taxpayer and providing stability and certainty on member benefits and contribution rates.
I therefore wish to notify the House of my intention to table amendments before the Committee stage, to set the framework for implementing a reformed scheme only design and the economic check. The wider 3% corridor will be implemented through secondary legislation in due course. This approach will ensure that the reforms are in place in time for the next scheme valuations. That is important to ensure that the mechanism is operating more in line with its objectives to protect both taxpayers and members the next time it is tested.
As I have explained, the Bill builds on the existing legislative framework for all public service pension schemes. Each scheme is complex, because each one is tailored to fit each workforce’s individual requirements. The Government intend the Bill to reflect those differences, many of which are found in the detail of scheme regulations. Additional detail will therefore come before Parliament in the form of statutory instruments for further scrutiny. To demonstrate the approach to secondary legislation, policy statements have been deposited in the Library of the House for further scrutiny.
Let me now turn to the next element in the Bill, the package of reforms to help to address the resourcing challenges facing the judiciary. Our justice system is world renowned for its excellence, objectivity and impartiality.  That is due in no small part to the expertise of our court and tribunal judges, our coroners and our magistrates. However, as the demands on our courts and tribunals have changed, so too has the need to recruit and retain judicial office holders. While we have recruited about 1,000 judicial office holders a year since 2018, we have not been able to attract the full number needed across all courts and tribunals, which has inevitably put pressure on the system. Raising the mandatory retirement age to 75 will, our modelling suggests, retain about 400 judges and 2,000 magistrates per year at a time when we face challenges in resourcing and recruitment.
It is vital that we continue to attract and retain high-calibre judges. The Bill therefore lays the foundation of a new, reformed pension scheme for judges, increases the mandatory retirement age of judicial office holders to 75, and extends the potential for sitting in retirement to the fee-paid as well as the salaried judiciary. It puts judicial allowances on a firmer legal footing, including those for reserved and excepted posts in Scotland and Northern Ireland. I assure the House that the UK Government will engage with the respective devolved Administrations before the introduction of such allowances.
Taken together, these measures will ensure that a judicial career is more attractive, that more of our experienced judicial office holders are retained for longer, and that additional flexibilities are offered. It is vital that we enable our world-class judiciary to meet the demands of today and tomorrow.

Bob Neill: I entirely support what the Minister says about judicial pensions reform, but, since he wears another hat in his capacity as Chief Secretary to the Treasury, may I raise a further issue that is sometimes an impediment to recruitment, namely the operation of the lifetime cap on pensions earnings? In particular, many who have earned well at the Bar and who might otherwise seek appointment to the High Court bench still encounter a disincentive because of the operation of the overall lifetime cap. At one point a carve-out was arranged to reflect that. Although this does not feature in the Bill, may I ask the Minister to take it away and perhaps speak to the Chancellor about it? It is the final bit of the jigsaw that could be sensibly introduced to encourage the very best people to seek appointment to the bench.

Simon Clarke: As Chair of the Justice Committee, my hon. Friend brings a huge amount of expertise to bear on this issue. I can make an absolute commitment that we will look at this, and I will always discuss plausible options to ensure that the judicial pension scheme supports recruitment rather than being in any way an impediment to it. That is very important, and it underpins our wider work on the new scheme for the judiciary. It will move from being tax-registered to being tax-unregistered, and a variety of consequential benefits will arise from that.

Richard Graham: If this were to be reviewed, it would be worth noting that a very similar issue applies to doctors, many of whom are inhibited from returning to work—following the appeal from the Health Secretary—by precisely the same lack of flexibility on the pensions and earnings issue.

Simon Clarke: I recognise my hon. Friend’s considerable expertise on this issue. I thank him for making that point, which is well worth our taking away. I will certainly commit myself to returning to him following any further discussions if that would be helpful.
Let me finally deal with the measures to establish new public pension schemes for the beneficiaries of the existing Bradford & Bingley and NRAM pension schemes. These pensions currently reside under UK Asset Resolution, the company that holds the Government’s remaining interests in Bradford & Bingley and Northern Rock. This is an important step in the Government’s careful long-term management of the financial sector assets acquired as a result of the financial crisis. I stress that all members, some of whom have worked for these organisations for around 30 years, will be protected. Their benefits will be at least as good as they are now under the new schemes and these measures will provide a secure, long-term home for members’ pensions.
My officials have worked closely and collaboratively with the devolved Administrations throughout the passage of the Bill. I am pleased to note that the Northern Ireland Executive have passed a legislative consent motion on the Bill and we are in discussions about a supplementary motion for the amendments that I have announced today. The Welsh Senedd is in the process of considering a motion and the Scottish Government are considering bringing a motion forward. I am grateful for their continued engagement on this issue.
Our public servants are the bedrock of our society. It is right that we reward them for what they do in a way that is fair, affordable and sustainable over the long term. The Bill’s measures seek to achieve all this while helping to address the specific recruitment and retention issues facing the judiciary. For those reasons, I commend the Bill to the House.

Pat McFadden: It is a pleasure to respond to the Chief Secretary’s opening speech. I begin by wishing you, Madam Deputy Speaker, and Members on both sides of the House a very happy new year.
Pensions are a very important part of workers’ overall pay package. It is in the interests of individuals and society as a whole that good pension schemes and good pension benefits are available to workers in both the public and private sectors and that those who pay into pensions schemes should be able to look forward to a good and secure retirement. When that is not the case, there is more pensioner poverty, lower quality of life in old age and a greater reliance on means-tested benefits. In those circumstances, individuals suffer and society is worse off.
The Bill deals with public sector pension schemes. The experience of the past two years has underlined the contribution made by the public sector workers affected by this legislation. Many of them had to be at work physically throughout the pandemic, caring for the sick, delivering key services or keeping our streets and communities safe. They deserve decent pay and decent pensions.
Part 1 of the Bill seeks to correct what the Public Accounts Committee has termed a “£17 billion mistake” made in the reform of this system through changes  introduced by the Government in 2015. To state the obvious, £17 billion is a lot of money. Of course, that is the cost over a long period of time, not just one year, but let us think for a moment what that money could do for families facing energy bills which this year could rise by hundreds of pounds a year. Even a fraction of it could make a major difference to those families. Or to put it in another context, the cost of fixing this mistake made by the Government is around three times the annual bill for the £20-a-week universal credit uplift that the Chancellor largely removed in the autumn.
The Government’s main changes to the pension system in 2015 were to move from final salary to career average pensions and to extend the normal pension age in most schemes. But—this is the crucial point regarding the Bill—there was also provision for those within 10 years of retirement to remain in the previous legacy schemes. That provision was challenged in the courts and found to be discriminatory on the grounds of age in what has become known as the McCloud judgment. The Bill seeks to respond to the McCloud judgment and ensure that people are not unfairly impacted on by the changes on account of their age.
The first question for the Minister must be: where will this £17 billion come from and who will pay the bill? Will it come from the taxpayer as a whole or from pension scheme members? We should remember that a very significant proportion of pensioners in this country are members of one of these schemes. It is very important that Ministers give the House clarity on this matter.
The second point is about the design of the remedy for the McCloud judgment set out in the Bill. Consultation took place on this, and the method chosen is known as the deferred choice underpin. It is perhaps not the most user-friendly title, but what it means in simple terms is that, when people retire, they will have a choice as to which pension scheme should apply for the affected years—between 2015 and 2022—to ensure that they maximise their available pension benefits. The second question I have for the Minister winding up is to clarify whether making this choice will incur any extra costs for the pension scheme members concerned. For example, if members opt to remain in their legacy scheme for the seven years affected, because the rate of accrual in that scheme is higher, will they have to pay any backdated pension contributions to do so?
Then there is the question of how people make their decision under this deferred choice mechanism. Anything that involves individual scheme members making a choice that could have a fundamental impact on their income in retirement raises another question, which is about the quality of information that enables a pension scheme member to make such a choice. The recent history of information on pensions has given rise to some real injustices. We have had unscrupulous advisers trying to exploit pension freedoms and get people to transfer out of perfectly good pension schemes in a way that was clearly not in those people’s interests. Indeed, this House has only recently legislated, in the Compensation (London Capital & Finance plc and Fraud Compensation Fund) Act 2021, for an increased levy on the pension industry as a direct result of increased levels of pension fraud and mis-selling. So the third question to the Minister is this: how will the Government respond to what has happened in these examples and how will they ensure that, in this case, pension scheme members are  equipped with the best possible information to make the choices envisaged under the deferred choice underpin mechanism set out in the Bill?
Finally on this part of the Bill, there is a question about how the cost control mechanism will work. The Chief Secretary has already said that the Government will bring forward amendments on that, and we will have to examine those closely. In brief, it was originally envisaged that, under this mechanism, if costs breached the ceiling, benefits would be reduced, but the Government have said that, in this case, no member will see benefits reduced. What does that mean for where the funding for them will come from, and is there any time period after which this guarantee may lapse?
I now turn to part 2 of the Bill, which makes changes to the pension arrangements for former employees of Bradford & Bingley and Northern Rock. Their assets have, until recently, been managed by UK Asset Resolution, which is an arm of Government. The Bill provides assurance that the pension liabilities for these former employees will be met and underpinned by the Treasury. We welcome pension security for these pension scheme members, but can I ask the Minister what the estimated cost is of these provisions, and whether these costs are additional to the £17 billion budgeted for the McCloud response or part of the same overall costs?
Turning to the part of the Bill dealing with the judiciary, the Bill makes changes to the judicial pension scheme, allowing for the deregistering of this scheme for tax purposes on the basis that judges are an exceptional case. I want to return to the question posed a few minutes ago by the hon. Member for Bromley and Chislehurst (Sir Robert Neill), who asked about the annual allowance and the lifetime allowance. Could I ask the Minister to clarify what this deregistering means in the context of the annual allowance and the lifetime allowance? If it is the case that those two restrictions, as it were, do not apply to the judicial pension scheme, how will the Government respond to representation from others saying that they too are an exceptional case? We have already heard the example of doctors being raised. I would be very grateful if the Minister addressed those points in his winding up. Forgive the irony, but if I am right about the interpretation, how confident are the Government that, in making this exception, they will not open the door to legal action from other sectors arguing that they too should enjoy similar treatment?
The Bill also raises the retirement age for judges from 70 to 75, reversing a change made back in 1993. We understand the backlog in the judicial system, and we support measures to reduce the delays in bringing cases forward. There is truth in the old saying that justice delayed is justice denied, but when the Bill was being debated in the other place, concerns were raised that longevity of service might turn out to be the enemy of diversity in the system. How do Ministers respond to those concerns and what more will the Government do to enhance diversity in the judicial system, because it is important that as the country changes the institutions governing the country change with it?
The final issue on which I would like the Minister’s response is the pensions trap, which has been raised by representatives of police officers, among others. Police pensions operate differently from other public sector schemes in that they are based on a 30-year service record rather than a specific retirement age. The Police  Superintendents Association, the Police Federation, the Fire Brigades Union and others have raised fears that individual scheme members in their pension schemes could lose out because of the way that the affected years between 2015 and 2022 are treated. I accept that this is a complex matter, but the end result is that a number of police officers feel that a new discrimination is being introduced by the way in which the Government are applying the remedy for the McCloud judgment. In November, the Home Office acknowledged that there is an issue and said that further work was needed. Has any further dialogue taken place with police and fire staff representatives in the past two months, and can the Minister give any further information on how the issue might be addressed?
In conclusion, we will not oppose the Bill, because we understand that the Government had to respond to the McCloud judgment, and they have a duty to ensure that pension schemes do not operate in a manner that is found to be discriminatory by the courts, but in future we will take with a pinch of salt lectures from Ministers about fiscal probity, when the Government have had to introduce legislation to correct what the Public Accounts Committee has defined as a “£17 billion mistake”. We also want assurances that proper, clear and understandable information will be made available to pension scheme members who will have to make important choices for their retirement under the mechanism that we are legislating for today.
Given that the major part of the Bill arose from a court challenge to the Government’s pension arrangements, we also ask how confident the Government are that this is the end of the story, and there will not be further legal challenges that will mean that we have to return to the issue in the future. Labour hopes that this response to the McCloud judgment settles the issues and ensures good quality pension schemes for the workers affected. We owe them all a debt of gratitude for the service that they have given and, in particular, for the outstanding service they have given over the past few years as the country has struggled with the pandemic.

Robert Buckland: Thank you, Madam Deputy Speaker, for calling me first in the debate. I am delighted to make a contribution to the Second Reading of a Bill that was very much part of the work that I undertook as Lord Chancellor. I was keen to make sure that we made progress with the Bill on several grounds, the first of which was the necessary reform to judicial pensions in light of the McCloud judgment and other legal developments since the previous set of reforms to judicial pensions. The second was the important and generational issue of retirement age for judges. The previous reform to that retirement age had been back in 1995, and it was not of immediate application but took many years to come into effect, bearing in mind its adherence to non-retrospectivity. I took a different view about the way in which we should approach reform this time. I felt very strongly that any change to retirement age should have immediate effect, and that it should benefit those currently in judicial office. I make no apology for that, because with welcome changes and elongations to lifespan, health and wellbeing, I thought that we were losing many talented men and women at  the height of their career. I am not going to name names, but there are many people who served in the highest judicial office who left at the age of 70, but who I felt had much more to give. Some of them were able to carry on in retirement, sitting with special dispensation, but I felt that we needed to do something generational. I very much hope that the change that we are bringing about in the judicial retirement age will endure for many years, well into the middle part of this century. We are not saying that people have to sit at 75. We are not forcing people to sit beyond the time they wish to serve, but we are giving them an opportunity to do that.
Can I deal head-on with diversity, because I considered that matter very carefully indeed when I was Lord Chancellor? I have had the privilege of serving on the judicial diversity forum, which is a committee of the Judicial Appointments Commission, ably chaired by Lord Kakkar, and we take the issue of diversity very seriously indeed. In the other place, amendments were tabled to reduce the age of retirement to 72, on the basis that there were concerns about slowing the increase in diversity, but I believe that that worst-case scenario is based on a failure to act. In other words, it is incumbent on the Ministry of Justice, the Judicial Appointments Commission and others interested in and passionate about diversity to do more to attract people of diversity to the judiciary.
In particular, many women have had career breaks to bring up their family in their 30s and 40s. At the moment, they face quite a difficult decision to return to practice, and regard a 70 age limit as inhibiting their ability to take up part-time, then full-time, judicial office. Increasing the age limit to 75 will allow more women who have had career breaks actively to consider what is a career of up to 20 years if they are to enjoy the full benefits of the pension.
We should not forget that in 1995, one of my predecessors, Lord Mackay, not only reduced the pension age but increased the time that people had to serve to take their full judicial pension from 15 to 20 years. That combined decision had quite an effect on the career opportunities presented to lawyers when considering whether the bench was for them. In other words, people really had to make up their mind in their 40s if they were serious about reaching the bench. There are plenty of exceptions—some people who have done very well in their profession could go to the bench later and perhaps take a smaller pension—but many people felt that they could not take full advantage of a judicial career because of that time restriction.
That changes with a retirement age of 75. People can come to the bench in their mid-50s and serve the full 20 years. That is a huge opportunity, not just for women but for people who come to the legal profession slightly later in their career, mainly because the financial burdens are so onerous in their younger years that they do not feel able to join it in the first place. Contrary to suggestions in the other place and elsewhere, the measure could be a spur to the Government and the Judicial Appointments Commission to do even more to attract women, people from an ethnic minority, and people who join the profession late to a judicial career.

Bob Neill: Can I perhaps reinforce my right hon. and learned Friend’s point? He may have noted from the statistics released by the Judicial Appointments Commission that there has been a particular shortfall in  appointments to the district bench and the circuit bench in recent rounds. Those are precisely the people for whom the ability to access a full pension is important. As my right hon. and learned Friend said, the high-earning silk who goes into the High Court may be able to deal with a lesser amount of pension, but the people I am talking about, who are the workforce, particularly in the criminal and family courts—the senior juniors, the senior solicitors—will be under the most pressure if they are not able to get the 20 years’ full pension. That will be most difficult for them.

Robert Buckland: My hon. Friend makes a really powerful point. There is no doubt that the district bench is under huge pressure at the moment. We are not getting the recruits and the applications that we need in order to have a full district bench. The work is some of the most difficult and challenging in the judiciary; it is unglamorous work, but it is vital because it is the bulk, for example, of the civil and family work that goes on in our courts day after day. We have increasing numbers of recruitment competitions seeking to attract more talented people to the bench, but often the vacancies cannot be filled, because there are not enough applications. That, frankly, is a problem. That is why not only the extended retirement age but the changes to the pension will really send a signal to practitioners that the Government value the judiciary and understand the vital importance of having the quality, independent and high-morale cadre of people we need. Without them, we really do suffer as a country.
I should have declared an interest at the beginning, in that I am the recipient, potentially, of a judicial pension because of my service as a recorder of the Crown court, which finished, of course, on my appointment as Lord Chancellor. That is another story, which I will not regale the House with today, but I did have to resign from the judiciary on my appointment as Lord Chancellor. That was not always the case prior to the Constitutional Reform Act 2005, and I think hon. Members know my strong views about the baleful effects of that piece of legislation. I am sure that, with leadership in the Ministry of Justice, we can come back to those issues, and that was certainly my intention when I was in office. However, I parenthesise.
Let me come back to the germane issue of the retirement age. I note the concerns that the senior judiciary and immediately retired judges in the other place had about the 75-year mark. However, I would respectfully but firmly disagree with them. Some 67% of respondents to the consultation agreed with my ultimate decision, which was to raise the retirement age to 75. The bulk of circuit judges, sheriffs in Scotland and other judges considered that the position absolutely pointed in the direction of 75. With the greatest respect to senior judges, many in the senior judiciary have already made their plans and their provision clear, and I do not expect that all of them will wish to serve until 75, bearing in mind the expectation prior to the expected change in the law. Therefore, I am not so persuaded that the logjam that some fear will take place, and I see no reason why there should not be a rise in the retirement age to 75, despite the concerns expressed in the other place.
I am particularly pleased that there was unanimity across the three jurisdictions that 75 was indeed the appropriate retirement age. I took a lot of time and trouble to make sure that colleagues in Northern Ireland  and Scotland were consulted. I was extremely grateful to the then Lord Chief Justice of Northern Ireland, Sir Declan Morgan, for his careful consideration of the matter and for all the consultations I undertook with him, and indeed to the President of the Court of Session, Lord Carloway, who himself undertook extensive consultations with the Scottish judiciary. I was very grateful to colleagues in the Scottish Government for agreeing with the position that I sought to take with regard to the retirement age, because I thought that a cross-jurisdictional, pan-United Kingdom retirement age was highly desirable, bearing in mind the fact that atop it all sits the United Kingdom Supreme Court, with the members of that court therefore able to enjoy the same retirement age limitations irrespective of jurisdiction. That was a very important consideration that I am extremely grateful to colleagues in the other jurisdictions for agreeing to.
We have reached a position where we have come to an elegant solution: one that allows professionals to make decisions that suit themselves within that outer limit of 75 and acknowledges the reality that we see now, where the Lord Chancellor is constantly asked to allow judges to sit in retirement post 70—up to 72, in any event. It acknowledges the fact that, thanks to modern science and medicine, we have an increasingly agile and able cadre of people in their early 70s who are willing to serve. In the light of other societal changes—in the light of the fact that, thankfully, we are able to do more things at a greater age than perhaps we were a generation or so ago—I warmly commend the increase in the retirement age, in particular to the age of 75, to this House.
When it comes to the magistracy, we have suffered quite a decline in numbers in recent years. It was not so long ago that we had 30,000 volunteer magistrates—let us not forget, these are volunteers—sitting and serving in our courts. That number has declined alarmingly, and therefore it seems to me a matter of very good housekeeping for us to make sure that we can retain as many magistrates as possible while encouraging the excellent recruitment exercises that the Ministry of Justice is undertaking at the moment. The MOJ is to be commended on the vigour and focus of the exercises it is currently conducting, but without that additional help, my worry is that we are going to reach a critical position with regard to the number of justices of the peace that would undermine the viability of the system. That, frankly, would be a real problem, particularly in the family proceedings courts, where the lived experience, good judgment and common sense of magistrates is brought to bear on a variety of very difficult and complex family situations every day of the week.
This Bill was something I wanted to see even more urgently. I am glad that it is getting its Second Reading in early January: if I had had my wish, it would have received Royal Assent by now, but I understand that my ministerial colleagues in Government have to work to timetables, and that they themselves have different and conflicting priorities. However, it is an important signal that we are sending to the judiciary and to other public servants: not only that the Government take the judgments of the courts very seriously but, I hope, to make the point that any perception that this Government are somehow at war with the judiciary—that they somehow see the judiciary as enemies of the people, or think of them as an inconvenient encumbrance—is thoroughly dispelled by measures such as these.
Without a world-class, independent judiciary of quality, this country is no longer a civilised place. Without the important input of robust judicial independence, none of the jurisdictions for which we sit could call themselves world leading. It is vital that in this world of conflicting and competing calls for international investment, we have the brightest and the best from our legal profession serving in judicial office, because that is the most eloquent way in which we can express to the world the fact that Britain and the three jurisdictions are safe and secure places in which to invest, safe places in which to live, and free and fair places in which we can all be equal under the law. I can perhaps be accused of labouring the point, but I think that this sort of measure, detailed and technical though it is, embodies our commitment to that essential quality. That is why I am delighted to endorse the Bill on Second Reading and look forward to seeing it make a swift passage through the House.

Peter Grant: I begin by wishing a somewhat belated bliadhna mhath ùr—happy new year—to you, Mr Deputy Speaker, and to colleagues. I include in that colleagues across the House who would have had something positive to contribute to tonight’s proceedings, or to the proceedings earlier in the day, but have been prevented from doing so because they are not able to travel to be here and for reasons that I will never understand are not allowed to participate without being physically present in this place.
The reason we have the Bill here today is that the court has ruled that the way that the Government have treated 3 million of our most valuable citizens is unfair, discriminatory and unlawful—a £17 billion mistake, as the right hon. Member for Wolverhampton South East (Mr McFadden) pointed out. We therefore have to approve either this Bill or something like it very soon. We cannot allow that illegality to continue. We will not oppose the Bill on Second Reading, although there are a number of areas where we have concerns, some of them echoing the concerns raised by the right hon. Gentleman. We may want to raise some of these matters in Committee in due course.
Before I go on to indicate some of the detailed concerns, I will set out some general principles. First, I entirely endorse the comments of the right hon. Member for Wolverhampton South East in that somebody who is giving valuable service anywhere in the public sector is absolutely entitled to a proper wage, to proper conditions of employment, and to a decent pension when they come to retire. This used to be quite a regular source of outrage for those on the Conservative Benches, egged on by their pals in the right-wing press—people like the Rothermeres and the Barclays who do not rely on a state pension, or any other kind of pension, all that much. They used to think it was outrageous that people who had worked a lifetime in the public sector were guaranteed a decent pension when they retired. It is not an outrage that somebody who gives 30 or 40 years of loyal service retires on a decent pension; it is an outrage that so many people who give 30 or 40 years of loyal service do not get to retire on a decent pension.
Although the Bill improves things following the mistake that was made, the Government have not even begun to look at possibly the single biggest weakness in a number  of big public sector public schemes, including the ones that we are talking about tonight—that is, that they are unfunded. That does not mean that there is no money for them, but it means, effectively, that somebody making a pension contribution today is paying not their own pension but the pensions of previous generations that have already retired. They are just hoping that when they come to retire a future generation of workers will be there putting into the pot to pay their pension, while the Government—the taxpayer—have to pick up any shortfall. It is almost like a legalised Ponzi scheme.
I would love to know what the thinking was when the schemes were set up. Why did anyone think that that was a good way to set up an employee pension scheme? It is intrinsically unstable, especially if the number of people employed and contributing to the scheme changes significantly over time, because a smaller number of people are trying to pay the pensions of a bigger number of retired colleagues—and clearly over the years most areas of the public sector have seen a reduction in employment. That is why we have the difficulty in affordability and sustainability that we are trying to address just now. To be honest, I do not envy whatever Government Minister it is who will eventually have to find a fair way of squaring that circle, but we cannot afford to keep ignoring it for ever.
Secondly, I believe in principle that for someone in a defined-benefits occupational pension scheme, a career-average scheme will be fairer than a final-salary scheme. It does not necessarily mean that it is cheaper. It does not necessarily mean that they have to contribute more. It does not necessarily mean that their pension has to be less. It would be quite possible to set up a scheme where the workers did not have to contribute any more and where most of them got the same pension or better than they already had. When I say that I agree with the principle that the Government have stated previously that a career-average model will tend to be fairer to a lot of workers than the current final-salary scheme, that does not mean that I want it to be used as an excuse to cut pensions, to force workers to contribute more of their wages to the pension scheme, or indeed to increase the pension age. We can move to a career-average scheme without having to do any of those things.
The third general point is critical. When somebody chooses to contribute to an employer’s pension scheme on the basis of promises that have been made by the employer, by the scheme administrator or by the Government, those promises must be honoured. Retrospectively moving the goalposts is not acceptable. It is not acceptable for public sector workers with regard to their employment pension, and it was not acceptable for the WASPI women. I know that that means that it takes much longer for any changes to pension schemes to have their full effect, but there is an important question of trust at stake. In October 2010, the Independent Public Sector Pensions Commission said that protection of accrued benefits
“is a prerequisite for reform both to build trust and confidence and to protect current workers from a sudden change in their pension benefits or pension age.”
I know that the Government have said that they want to comply with that recommendation, but it remains to be seen whether the Bill, as it is now or as it may be amended later, achieves that.
The contribution that people have made to their final salary scheme gives them an entitlement to the benefits that they were promised from that scheme at the time that they made that contribution. The fact that there seems to be widespread acceptance now that those promises might no longer be affordable for the public sector finances is not the fault of the workers and it is not the fault of their employers. For decades, successive Governments have failed to provide a public sector pension scheme that was affordable and sustainable in the longer term.
The final general point is that we need the Bill because the Government got it catastrophically wrong. They passed legislation that embodied unlawful discrimination. Regardless of what remedy is eventually put forward and agreed, it will have a cost. It will have a direct cost in terms of changes to people’s retirement age, changes to pension contributions, and changes to the pension they get when they do retire, and a substantial indirect cost as a result of the mountain of extra administrative work that will be needed. There should not be any argument about where these costs should fall. They should fall on the Government, not on the workers because it is not their fault, not on the employers, because it is not their fault, and not on the scheme administrators, because it is not their fault either. The Government created the problem and the Government should be making sure that they and they alone carry the costs of fixing it not only in the short term but permanently.
Let me turn now to some of the more detailed provisions of the Bill. The Government’s impact assessment says that there is “a small number of people” who currently have a mix of legacy scheme and new scheme benefits and that that mix is more advantageous than it would be for them to have all of the eggs in one or other of those baskets. Clauses 6(7) and 10(5) will force those people to put all their eggs into one basket. They will lose out. The Government have said that they are only losing out on something that they should not have had, because the Government previously passed a bad law. That is a feeble excuse. I would like the Minister’s clarification on this point. Table 4 on page 68 of the Government’s equality impact assessment—this is not the same as an assessment of impacts, although, presumably, the two should be compatible with each other—says that about 245,000 people have what is termed tapered protection. What assessment have the Government made of the number of people who will lose out from clauses 6(7) and 10(5)? If that number is anywhere close to 245,000, is it right that the Government should just dismiss them as a small number of people? Two hundred and forty-five thousand livelihoods do not seem like a small matter to me.
Clause 5 allows regulations to be made that would let members opt back into a scheme if they opted out during what is termed a “remedy” period. That is only fair as it protects workers from losing out if the rules on which they based their decision are retrospectively changed. Later on in the same clause, subsections (5) and (6) appear to allow the regulations to require the member to provide certain information, including the reasons why they opted out or did not opt out at the time. An excellent briefing prepared for us by the House of Commons Library suggests that those subsections could be used in regulations to restrict the right to reinstatement except when the member can demonstrate that they opted out as a result of that unlawful discrimination.
A similar situation is explicitly set out in clause 24. It allows members retrospectively to pay additional voluntary contributions if they can show, on the balance of probabilities, that they would have done that during the remedy period had it not been for the unlawful discrimination. In both those scenarios, how is somebody supposed to prove, even only on the balance of probabilities, the reasons they did something or opted not to do something seven years ago? Who keeps that information for that length of time? Who will they have to convince—the Government or individual scheme administrators? If it is individual scheme administrators, how do we ensure that there is consistency and fairness in the way that different applications to different schemes are applied?
Most importantly, where will the legal risk lie if, as seems inevitable, somebody is aggrieved that they have been prevented from opting back into a scheme or from making backdated additional voluntary contributions and takes legal action? Will the legal risk lie with the Government who caused the problem or with the pension fund administrators who are desperately trying to fix it?
One further query concerns the admittedly hugely complex interplay that has been mentioned among the amount of money that someone contributes to a pension, the amount of money they get as a pension, and their tax liabilities when they are paying into a pension and when they are collecting it after they retire. Again, I do not want to give the impression that I doubt the Government’s sincerity; I appreciate that they are entirely sincere in trying to ensure that tax consequences do not undermine the intention behind the Bill. All too often, however, I have seen the irrational way that the UK tax system works, even before the Bill has been enacted, so I genuinely do not have a good feeling about it. It concerns me that in passing the Bill, we will be relying on clause 11 of the Finance (No. 2) Bill, which is still in Committee and has not received Royal Assent, to sort out the problem that the Bill creates in relation to the potential impact on someone’s pension annual allowance. I do not like the idea that we are deliberately giving Second Reading to a Bill tonight while relying on a Bill that is somewhere else in the parliamentary system to fix the problem that we are creating. It does not seem to be a good way to do business.
After Second Reading and several days of Committee in the Lords, the Government had to come back with 123 amendments on Lords Report, and we have just been told that they are preparing an unknown list of amendments to table on Commons Report. That should make us all wonder how many other serious flaws that nobody has yet spotted are still lurking in the 116 pages of the Bill. The Bill should receive its Second Reading tonight, but I fear that many further amendments may be required before it is close to being fit for its stated purpose.

Robert Jenrick: I welcome the Bill and I am pleased to make a few brief comments. Like my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland), I was involved in its preparation and followed the consequences of the McCloud judgment as a Treasury Minister and as Secretary of State for Housing, Communities and Local Government.
I welcome the fact that the Bill will now provide certainty and enable the important reforms that began with Lord Hutton’s report and were enacted in the Public Service Pensions Act 2013, the regulations that subsequently followed and the reforms of 2015. It will help to enable those changes to proceed and will enable all concerned to be given the confidence and certainty that they deserve.
Again like my right hon. and learned Friend, I welcome the changes to the judicial age of retirement. In the early 1990s, when I think there was no retirement age, it was right to bring in a retirement age of 70. Senior members of the judiciary, such as Lord Denning, retired at 83. It was then right to bring in a somewhat lower retirement age but of course, to all our benefit, the world has moved on and we are living longer, so it is right to have a somewhat later retirement age than was legislated for in the 1990s.
The primary reason that I wanted to speak in today’s debate was with respect to an issue that arose out of the 2013 Act, which was ultimately tested by the Supreme Court when I was Secretary of State in 2020. The issue was whether the Government, acting through the Secretary of State at the Ministry of Housing, Communities and Local Government or its successor Department in this case, have the power to issue guidance to those who administer certain public service pension schemes, primarily funded pension schemes, the most prominent of which is the local government pension scheme, to guide those trustees and administrators away from making investment decisions that are contrary to the United Kingdom’s foreign and defence policy.
The reason why this came to court in 2020 was that when it was brought forward, initially by my predecessor, now the noble Lord Pickles, and his successor, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), the guidance issued by the Department was designed to guide local councils, primarily, away from adopting boycott, divestment and sanctions policies against Israel through their pension funds, although of course other examples were occurring at the time and might occur in future.
The Department issued guidance at that stage that was entirely within the spirit of the then law in 2013, but was subsequently found by a split decision in the Supreme Court to overstep the Secretary of State’s legal powers. The guidance was, I think, perfectly valid; it said that “there are certain circumstances where the trustees of the pension schemes should be careful not to make decisions which would conflict with UK national foreign policy and defence policy.”
Two issues arose when this was tested in the Supreme Court, in a case brought by a campaign group. The first was that some members of the Supreme Court felt that the 2013 Act itself did not give the Secretary of State the necessary powers. The Act clearly states that the Secretary of State can bring forward guidance on how the fund should be administered, but there was perfectly legitimate debate within the Supreme Court about whether the guidance went sufficiently far to cover this particular point. Three of the Supreme Court judges deemed that it did not, while two had a dissenting view.
There was a second, not totally unrelated point made: some members of the Supreme Court were of the view that some of the pension funds in question were not  within reach of the British Government, that they were essentially not part of the British state, and that by contributing to a pension fund, a civil servant or an officer of a local council is contributing to a pension scheme that is ultimately outwith the reach of a Secretary of State’s issuing such guidance. That, again, was subject to debate and conflicting views within the Supreme Court, and Lady Arden and Lord Sales dissented.
Both judges took the view, which I agree with, that a scheme such as the local government pension scheme is liable to be identified with the British state for a number of reasons, not least the fact that ultimately the money to pay for it is coming from the taxpayer, but also because it is underwritten by the taxpayer and by statute. Those looking in from afar, for example in a foreign country such as Israel, would be likely to deem a decision by the trustees of one of these pension funds to reflect in some respects the British Government and the views of the British state.
The outcome of the Supreme Court decision in 2020 was that the rule and guidance issued by the then Ministry of Housing, Communities and Local Government was disapplied. I would argue that the time has come, in this Bill, to make the modest change that we need in law to ensure that we can rectify that issue and change the situation. A small amendment to the Bill would give the Secretary of State the powers he or she needs to issue the necessary guidance. That was essentially the message that came from the Supreme Court: if the Government wish to do this, they must ensure the law is clearer than it was in 2013.
I am here to suggest to my right hon. Friend the Chief Secretary that a small amendment be made to the Bill to ensure that that can happen. The Government took this matter to the Supreme Court; unfortunately they lost, and of course we respect the Court’s decision, but the matter is able now to be rectified with a small technical amendment. It is one that I think is appropriate. It is the Government’s policy that we do not support BDS. The Government wish to bring forward a Bill on BDS later in this Parliament, and I hope that they do so, but this is the appropriate place to make the amendment because this is, after all, the successor Bill to the 2013 Act in which this issue arose.
It is important to say why we would want to do this. BDS is a divisive matter. It damages and undermines community cohesion and sows distrust, and we do not want to see local councils trying to influence foreign policy decisions, which are properly the purview of the United Kingdom Government. This is not about politicising public sector pensions, as was implied, I think, by one member of the Supreme Court; it is precisely the reverse. It is ensuring that public sector pensions, which are ultimately paid for by us all as taxpayers, are not politicised, and that political judgments do not come into decisions on the types of investments that are made by these funds.
I will conclude my remarks and leave the matter with my right hon. Friend the Chief Secretary, and I hope that, between us and other interested Members in all parts of the House—there are a significant number—we can find a resolution to this issue, which has been hanging around now for several years, between 2013 and that judgment in the Supreme Court a year and a half ago, and put it to bed.

John Martin McDonnell: I have to give it to the right hon. Member for Newark (Robert Jenrick) for his ability to describe possibly one of the most inflammatory amendments that we shall consider in this House as a modest technical amendment—but there you are. I am sure we will come back to that debate as part of a wider discussion of the issue.
I want to focus briefly on part 1 of the Bill, which addresses the McCloud judgment. I think we have to acknowledge that what we are having to deal with is an absolute mess in the management of public sector pension schemes by the Government, exposed by the McCloud judgment. It was a mess created not by the members of the public schemes themselves, who have been congratulated across the House this evening on the public service commitment that they are demonstrating at the moment, but by Government decisions. As this mess was created by Government decisions, it follows that the cost and the burden of clearing up this Government-created mess should fall not on the pension scheme members themselves, but on the Government.
Because I have received so many representations from constituents on this matter, I want to get some of the narrative clarified on the record. It is worth going back into the mists of time to fully understand the context and the genesis of this dog’s breakfast, as it was described in the other place.
I am grateful to Bryn Davies—Lord Davies of Brixton—a Member of the other place, our foremost pensions expert, formerly the TUC’s actuary and pensions adviser, and subsequently adviser to numerous trade unions and associations, for the explanatory notes that he has provided to a number of us and the issues that he has raised in the other place. Bryn Davies reminded me of the history of the pension reforms that have laid the path to this chaotic state that we are now trying to resolve.
The mechanism for managing the future funding of public sector pensions stems originally from the discussions between the Labour Government and the trade unions in 2006. It was those discussions that resulted in a broad relationship agreement—the Warwick agreement—and also agreed a series of pension reforms. The aim, quite rightly, was to stabilise for the long term the funding of pension schemes to enable decent pension schemes to be provided, and to tackle, to be frank, the fact that some people who had provided a service throughout their career were finding, contrary to what the hon. Member for Glenrothes (Peter Grant) said, and contrary to what was being reported in a number of papers, that they were being provided with a pension on which they were hardly able to survive.
In 2011, following those discussions, the coalition Government commissioned the Hutton report, which led to the Public Service Pensions Act 2013. That Act provided the basis of the existing system, including the cost control mechanism that we are addressing in this Bill. The key element of the cost control mechanism was that the cost to the employer of each of the public service schemes was fixed as a percentage of pay, which meant that if the cost of providing a scheme increased—I remember the debate and the predictions that were made—for instance due to some scheme members living longer than expected, it was agreed that either benefits  would be reduced or members’ contributions would be increased. A number of us did not like it, but that was what the House agreed because it was seen by some as a fair process for the future.
If the cost of providing a scheme fell, such as if pensionable pay did not increase at the expected rate, benefits would be increased or members’ contributions would be reduced. That was the equivalence that was agreed, and it was considered fair. I remember the debate, and it was also agreed that things would stay as they were if the change was less than 2% in either direction.
It was always agreed that some types of additional costs would be the responsibility of the Government—employer costs, as defined, as opposed to member costs. In 2012 the Treasury published a report that spelled out the difference. Employer costs were exemplified by changes in actuarial methodology or changes in the discount rate. The logical argument made by the unions is that the additional costs resulting from remedying the Government’s actions in this case, as exposed by the McCloud judgment determining that the Government’s actions were unlawful, are the responsibility of the Government, and therefore fall squarely into the category of employer costs, not member costs.
This is critical because the cost of the schemes, as used for control purposes, has usually fallen, largely because pay rises have not been as high as expected or because life expectancy has not improved as was previously predicted. If we abide by the agreements that were legislated for in this House, pension scheme members should have received either improvements in benefits or reductions in contributions, or a combination of the two, because the cost of the schemes has fallen.
Instead it appears that the Government are minded to treat the remedy costs of the McCloud judgment—the costs of remedying the Government’s illegal actions—as member costs. We have heard from my right hon. Friend the Member for Wolverhampton South East (Mr McFadden) that the cumulative cost could be £17 billion. This kicks in the cost control mechanism, as in some schemes the cost will rise by more than 2%. This would usually have resulted in cuts in benefits or increased contributions, so at least the Government have introduced a waiver to prevent that from happening.
However, this does not assist my constituents who rightly argue that they have been robbed by the Government and forced to pay over the odds in pension contributions but will receive no additional benefits. In fact, they feel they have been hit by a double whammy, having had their pay virtually frozen or cut but, as a result, still losing out on pension contribution savings. The impact for some will be the prospect of hardship in retirement as a result of not receiving the full benefits of their scheme as originally agreed. For many others, the measures will undermine the incentive to contribute to the pension schemes that are available to them. We have already seen more than 270,000 who are open to joining the scheme dropping out of it. This disincentivisation means that pensioners will be living in greater hardship and poverty and will therefore be reliant on state benefits, so there will be no saving to the Government overall. From the discussions I have had with my constituents and a range of trade union representatives and members, I know that there is a sense of betrayal among pension scheme members.
Another issue that my right hon. Friend the Member for Wolverhampton South East raised was the pensions trap, which has been highlighted by the police associations, particularly the Police Superintendents Association, and by the firefighters, in which the value of the contributions and the pension declines with additional years of service. That is a contradiction that needs to be resolved by the Government, and I hope that that will be undertaken as the Bill goes into Committee and comes back to this House.
The discussion around pensions is as sensitive as the issue of pay, if not more so at times. These are always sensitive policy issues, and people naturally have strong feelings about them. It is worrying to me that, as Bryn Davies—Lord Davies in the other place—highlighted, the key decisions on whether the remedy cost is a members’ cost or an employers’ cost, and on whether the cost of the remedy should be spread over four years as suggested by the Government, are neither on the face of the Bill nor being dealt with by delegated legislation. Instead, under section 12 of the Public Service Pensions Act 2013, these issues will be dealt with by “Treasury directions”. That means that financial obligations will be placed on scheme members without effective parliamentary decision making or scrutiny. These are not technical matters; they are matters of high policy and they affect many of our constituents. They are a matter of public concern and they have generated anger among many of our constituents at what they feel is the unjust way they are being treated. Members of this House should insist that these decisions are subject to proper parliamentary scrutiny and proper parliamentary decision making.
Much of what we are debating in part 1 of the Bill will almost inevitably be the subject of further legal challenge by a large number of trade unions and possibly, we hear, even by the British Medical Association. I fear that, rather than remedying the Government’s errors and lack of judgment, the Bill will almost wilfully compound those past errors and possibly exacerbate the strong feelings of injustice felt by many of our constituents. I say to the Minister that considerable thought needs to be given to these issues in Committee and possibly on Report, to ensure that the Government do not lay the burden of the failure of past Government policy making on the innocent shoulders of many of our constituents, who, as has rightly been said today, are providing essential services across a communities at a time when we desperately need them.

Bob Neill: It is a pleasure to follow the right hon. Member for Hayes and Harlington (John McDonnell). He brings detailed knowledge of these matters to the debate, and although we do not always agree, it is always interesting to listen to the careful arguments that he deploys on pensions matters. I remember that from my time as the junior Minister responsible for the local government pension scheme.
I note the points raised by my right hon. Friend the Member for Newark (Robert Jenrick) about the potential conflict between a boycott, divestment and sanctions approach involved in taking a political attitude to pension schemes and the fiduciary duty of the trustees of those  schemes to their members. That is something that we will return to, but with no disrespect to other Members, I want to concentrate on the elements of the Bill that concern judicial pensions and the retirement age, which obviously engage my interests as the Chair of the Justice Committee.
I will not repeat much of what has been said with great eloquence by my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland), who made the case very clearly. I welcome what the Government have done, as it was clearly right to respond to the McCloud judgment, and I am glad about the way in which they have done so. It is also good news that the Bill brings an even-handed approach to fee-paid judicial office holders—recorders and deputy district judges, for example—so that they are on a much more equitable basis with the full-time judiciary. That is a sensible approach.
By and large, the changes are welcome and necessary, but I hope that the Minister will take away the point about the interaction of the annual cap and the lifetime cap, which is particularly important to those who tend to be appointed to the High Court bench. Generally, those people are drawn from high-earning, highly experienced Queen’s Counsel and senior partners in solicitors firms. The reality is that we have to make it worth their while to undertake what is a public service in the latter stages of their career. Having been successful in practice, almost inevitably they take an income cut to go on the bench. There should not then be a tax penalty on top. If we want the very best on the bench, especially in the commercial court and other specialist jurisdictions, which have a reputational and financial value for the United Kingdom because our judicial system is a centre of excellence and venue of choice for high-value litigation, we have to make sure that we always get the very best to sit in those jurisdictions.
I want to deal with the issue of the retirement age, particularly the impact that that has elsewhere in the system. The Justice Committee considered the legitimate point that has been made and referred to about the impact on diversity of increasing the retirement age to 75. It is a fair point to make. There is no doubt that 70 is too low. The world has changed massively since the time when, as has been observed, Lord Denning was sitting into his 80s. Happily, many active 70-year-olds are well able to continue to contribute in many areas, and the judiciary should reflect that, as much as this House and anywhere else. My right hon. and learned Friend the Member for South Swindon rightly, prompted by others and by me, some time ago increased the age at which jurors can sit to 75. The burdens on people serving on a jury, even in a long case, are nothing like those for a full-time judge, but it is significant that we accepted—and the House accepted—that decision makers, in fact, could continue perfectly reasonably until 75. There is no reason, for example, why that should not be the case for the magistracy as well. I can think of many able magistrates whom we have needlessly lost at an artificial cut-off age of 75.
The same applies to the bench. One can think of a number of distinguished former members of the High Court and the Supreme Court who have had to retire at 70, with many years of service still to give, and still do so, often sitting as arbitrators in important areas of commercial litigation and mediation. I am glad that  they can do so, as they perform a great service, but many of them would be happy to continue in public service as justices in the High Court and the Court of Appeal. We are therefore right to reflect societal and medical changes that have taken place.
The concern about opening up vacancies was debated at some length in the other place. As I say, it engaged members of the Select Committee, and a majority expressed concerns about it. I speak for myself in this regard, as I think that 75 is the right age in the circumstances. I am persuaded by the majority of respondents. I am conscious that a number of those in the senior judiciary would have gone to the age of 72, but it is currently possible to make a business case on an individual basis for members of the judiciary to sit until they are 72, so I do not think the difference is great.
The impact assessment indicates that the potential diminution in diversity opportunities is minor in reality. As has already been observed, there is a great gain in particular for women practitioners who have taken a career break and have therefore not necessarily had the opportunity to gain sufficient seniority within the professions to qualify for appointment, but who will be able to serve for the full 20 years required to qualify for the full judicial pension.
As my right hon. and learned Friend the Member for South Swindon observed, in essence we had a reduction of the age to 70 and an uplift in the number of years that had to be served from 15 to 20—in other words, if someone was not on the bench by the time they were 50, they would not get their full pension. As I observed in my intervention, those at the very high-earning end of the Bar and the solicitors’ profession may well have made other provision in that regard during their earnings in practice, but it is of particular value for the people who are—I hope they will not regard my use of this phrase as in any way disrespectful—the real workhorses of the system, who sit in the Crown court and the county court, to have the full judicial pension. Those on the circuit bench and the district bench take on the vast volume of judicial work and generally—certainly in crime and family work—will have largely done publicly funded work so will not have been in the position to put by great provision for the future while they were in practice but will none the less have undertaken important, critical work in the latter stages of their career and have a reasonable expectation of being able to serve the full 20 years to get their pension and to bring their expertise to bear.
It is significant that in the latest recruitment round there has been a shortfall of around 49 in respect of recruitment to the district bench. The vacancy rate in the latest round was 106, and 57 appointees were recommended for appointment to the district bench, and in the circuit bench there were 63 vacancies and 53 were recommended. Despite the excellent work done by the Judicial Appointments Commission, there is a shortfall—the Lord Chief Justice indicated recently in evidence to the Justice Committee that it is a continuing shortfall—in those key areas that deal with the vast volume of serious work: crime, family and civil. It is important to give people the opportunity to serve that much longer in terms both of judicial people power, if I can put it that way, and of making the career prospects attractive.
We do need to make the judiciary more diverse and more representative, but the way to do that is not to keep down the retirement age to such a low level that able people are needlessly lost to judicial service. We must redouble our efforts to attract people from diverse backgrounds and particularly from some ethnic minorities. The truth is that it varies, because it is not a homogeneous issue: the Select Committee heard compelling evidence that some minority groups are much more willing than others to consider a career in the law and in the judiciary. Let us do more to reach out right across the board to engage other groups and let us reach out to get more women to return. There has already been improvement on that, particularly in the magistracy and elsewhere, but there is more to be done.
We must of course encourage people to advance up the judicial ladder and to recognise that to advance from, for example, the district bench to the circuit bench and then into the High Court is something that is open and to be encouraged for all. I commend the work of the noble Lord Kakkar and his colleagues on the Judicial Appointments Commission in that regard. They recognise that we can always do more, and we as a House would recognise that, as would the Minister and his colleagues. We should not accept that the commitment to diversity that we all share, and our equal commitment to excellence and to having the very best people available to serve on cases which, after all, at almost every level change people’s lives to a greater or lesser degree, mean there must be an either/or trade. It is perfectly plausible and viable to have both, and that must be our objective. I therefore think that, on balance, we have the right position. I am conscious that I differ from some Members of the other House, who, as lawyers, I greatly respect. Equally, however, other highly experienced lawyers in the other place came to a different view. I am persuaded on this occasion, not for the first time, by the noble Lord Mackay of Clashfern, who reduced the age to begin with. If James Mackay is prepared to do a John Maynard Keynes and say, “The facts have changed; I have changed my opinion”, that is probably good enough for the rest of us and it certainly is for me.
On balance, I think the Government have got this right. I am sure that we will return to it on Report but, overall, this is a good measure. I hope that it is a part of package that we must have to make a judicial career attractive. I say to the Minister—this is strictly outside the scope of the Bill, but I hope you will indulge me, Mr Deputy Speaker—that it is not just the pensions that matter, but the tax treatment, as I mentioned, and, as the Minister is responsible for the courts, the working conditions, including the maintenance of the courts, the support that judges get from court staff, some of the lowest-paid in the public sector, and making sure that there are not leaks in the corridor and that the heating does not break down, as he and I know happens in some Crown courts. It is also about ensuring that there is general public respect, which we can all have for the judiciary at every level. All of us, whether we agree with any individual decision, should treat the judiciary at every level with the utmost respect because they are fundamental to the maintenance of our democracy just as much as this House is.
I hope that the House will pass the Bill swiftly and send it forward to an early Royal Assent.

Christine Jardine: It is a pleasure to follow the hon. Member for Bromley and Chislehurst (Sir Robert Neill), and it was very interesting to hear his views on that aspect of the Bill and the judiciary. It is one of the reasons why— as other Members have mentioned—I do not think that the Liberal Democrats will oppose the Bill, although we may, at a later stage, table a number of amendments, which I will return to later.
As has been mentioned, there have been a considerable number of amendments to the Bill, which is intended, as the Government said, to ensure that we have equal treatment for all members in each of the main public service pension schemes. It would remove unlawful discrimination and bring in the remedy to age discrimination, as identified in the McCloud judgment, enable the Treasury to establish new public service pension schemes, increase the mandatory retirement age for judges, as the hon. Member mentioned, and provide for regulation-making powers. I believe that all of us in this place would support those aims, but the Liberal Democrats have several concerns, some of which the right hon. Member for Wolverhampton South East (Mr McFadden) mentioned. Many of the concerns were raised in the other place in relation to the amount of detail that is left to regulation and direction and what support will be available to members in making important decisions about their future pension planning.
In considering the Bill, we should reflect on lessons that we have learned, or should have learned, from previous, well-intentioned but ultimately problematic pension reforms, when issues of discrimination and unfairness emerged. I am thinking of the unintended consequences, a lack of information and poor communication, the implications of which have characterised the changes to the state pension age for women, particularly those born in the early 1950s. Ministers could do worse than to listen to some of the 6,000 so-called WASPI women in my Edinburgh West constituency talking about the hardship that the mismanagement or miscommunication of complicated pension changes can cause.
Our experts fear that up to 3 million pension holders will be affected by these important changes. Although consultation responses were supportive of the deferred choice method in the Bill, they warned that the complexity of implementing it may have been underestimated, and that was one of the concerns the Liberal Democrats mentioned in the other place. We believe that not enough support is being offered to members of schemes faced with complex decisions that could involve heavy losses. In the other place, we tabled an amendment to require the Secretary of State to issue guidance to help members understand the choice in front of them, and that could include something like a helpline.
We are also concerned about fairness and the disproportionate effect that some of the provisions in the Bill may have on women, and we tabled an amendment in the House of Lords on women and the gender pensions gap. The Government do not seem to have any real policy on how to rectify the problem, and women will potentially be adversely affected by the Bill, given the time they will have taken out of work for childcare and so on.
One last concern, which we may return to, is that raising the mandatory judicial retirement age from 70 to 75 could have a negative impact on the diversity of the judiciary,  which at the moment is dominated by older, white men. To return to the statement by the hon. Member for Bromley and Chislehurst, the judiciary—its diversity, its fairness and its reflection of the country—is as important in many ways to our democracy as this place is.
That is all we would want to add at this stage, but we will return to these issues, perhaps on Report, and certainly with some amendments.

Matt Rodda: I am grateful for the opportunity to close the debate on behalf of the Opposition. As my right hon. Friend the Member for Wolverhampton South East (Mr McFadden) said, we do not oppose this important Bill—indeed, I welcome the serious debate that has taken place this evening—but we will continue to hold the Government to account as the Bill progresses. I thank Members on both sides of the House for their valuable contributions, and I am grateful to the hon. Members for Gloucester (Richard Graham) and for Bromley and Chislehurst (Sir Robert Neill), the right hon. and learned Member for South Swindon (Sir Robert Buckland), the hon. Member for Glenrothes (Peter Grant), the right hon. Member for Newark (Robert Jenrick), my right hon. Friend the Member for Hayes and Harlington (John McDonnell) and the hon. Member for Edinburgh West (Christine Jardine).
Our public sector workers play a vital role, and I pay tribute to the hard work of our NHS staff, teachers, police, firefighters and many other dedicated public servants, all of whom are affected by this Bill. We owe these public servants an enormous debt of gratitude for their vital work during the pandemic. As we heard, these workers had to be at work physically throughout the pandemic—not at home or working online. They were caring for the sick, delivering key services or keeping our streets and communities safe. It is right that these dedicated workers can expect a decent pension in their retirement. It is not always understood that most of the schemes in question operate on a pay as you go basis, with workers themselves contributing throughout their working lives.
The shadow Chief Secretary, my right hon. Friend the Member for Wolverhampton South East, raised a number of important questions in his speech, and I am afraid to say that, so far, Ministers have failed to fully answer them. I hope the Minister, in his closing remarks, will now reassure these hard-working public servants about a number of matters.
The most important question is, where will the £17 billion it will cost to fix the Government’s mistake in 2015 come from, and who will pay this enormous bill? Will it be the taxpayer, or will it be the pension scheme members?
The next question is about the design of the remedy the Government have put forward. I welcome their decision to accept the mechanism favoured during the consultation, but we need clarity about whether that choice will incur any costs for the pension scheme members concerned. If the Government are going to ask scheme members to take potentially significant decisions, will they commit to providing much more information to pensioners and savers to help them avoid making costly mistakes? Ministers have failed to do so in the past, and even now they seem reluctant to include pension scams in their important Online Safety Bill, despite the spiralling costs of pension fraud and mis-selling.
We also ask the Government to be clear about how the cost control mechanism will work. We were told at first that if costs breached the ceiling, benefits would be reduced, but the Government have said that no member will see benefits reduced in this case. What does that mean? How will the necessary funding be provided, and is there going to be a time after which such a guarantee may lapse? Ministers have left a number of crucial questions unanswered about part 2 of the Bill as well: what are the estimated costs to the Treasury of underpinning the liabilities of former employees of Bradford & Bingley and Northern Rock, and are those costs additional to the £17 billion budgeted for the McCloud response, or are they part of the scheme and the overall response?
Carrying on to the next part of this important Bill, which concerns the judiciary and has been the subject of much of the debate this evening, do the annual allowance and lifetime allowance not apply to judges? I ask the Minister to clarify that very important point: it is unclear, and it must be clarified. If judges are not covered by the same rules, how will the Government justify that decision to other pensioners? Indeed, does that decision leave the Government open to legal challenge in the future? Furthermore, colleagues in the other place voiced concerns that raising the mandatory retirement age for judges could make it more difficult to increase diversity in our legal system. I hope the Government will make available further details of how they plan to ensure this does not happen. We understand the need to clear the backlog of cases, but I urge the Government to do far more to increase diversity in this very important profession.
I will also take this opportunity to underline the concerns raised by the Police Superintendents’ Association and, indeed, the Fire Brigades Union. Scheme members in the police and fire services could be adversely affected by this Bill because of the ways in which the years between 2015 and 2022 are treated. We know that the Home Office said that further work was needed on this issue, and Ministers have discussed it with representatives of the police and fire services. How will the Government now address this important point? I hope the Minister will speak to that in his closing remarks.
Finally, I urge the Government to respond to the points raised by the Public Accounts Committee when it went through the proposals in a great deal of detail. We must fully understand the consequences this Bill could have for both employees and employers, and I am concerned that the Government have not properly considered the knock-on effects on public service recruitment and retention, which are both absolutely critical issues for these vital public services. There is also a risk that more means-tested benefits may be required if there are changes to public service pensions, and that public service pensions may be worse off. I hope that we will hear reassurance from Ministers on those crucial points. I assure the House and the wider public that we in the Labour party will keep raising these important questions, and I hope the Government will respond in a timely and appropriate manner.
I realise that time is pressing, so I will end my remarks with the following: on an issue of such great importance as the future pensions of so many public sector workers, the public deserve to be confident that the Government have adequately prepared for all eventualities and fully understand the consequences of their actions.  Public sector workers, as well as Members of the other place, have made their concerns and questions clear, and it is regrettable that they have not been answered in full so far today. I hope that the Minister will now take his opportunity to reassure the House, the wider public, and public servants about these important points.

James Cartlidge: Let me start by thanking all right hon. and hon. Members for their contributions. Before turning to the specific points raised during the debate, I join other colleagues in recognising that this Bill is ultimately about public sector pensions, and comes at a time when our teachers, nurses, police, judiciary, and the entire public sector workforce are once again being tested by the ongoing challenges of the pandemic. I join others in expressing my profound thanks to all those working so hard on the frontline, particularly—as the Opposition spokesman, the hon. Member for Reading East (Matt Rodda), has quite rightly just said—those who have not been able to work at home. They have been out there, risking their health for our benefit, and we owe them a huge debt of gratitude. That is why this Bill ensures that those who deliver our valued public services continue to receive guaranteed benefits in retirement on a fair and equal basis.
However, of course, the Bill also includes provisions to help address the resourcing challenges facing the judiciary. I wanted to start with this crucial point about capacity in our justice system, not least because it gives me an excuse to offer my profound congratulations to my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland) on his honour in the new year’s honours list. It is richly deserved, and as the Minister responsible for court recovery, I hope that a particular part of that honour was due to the massive effort that my right hon. and learned Friend put in with the Lord Chief Justice to keep jury trials going in this country against all the odds. That was incredibly difficult when the pandemic started, because let us be clear: 2 metre social distancing and jury trials go together like a fish on a bicycle, to put it bluntly.
If anyone is in any doubt about this very serious point, they should look at the situation in Wales today, because I can confirm to the House that the new 2 metre social distancing rule in Wales could have profound implications. It is our calculation that, of the 17 Crown courtrooms in Wales, five could be out of use if 2 metre social distancing is enforced strictly, and the two we were planning to open could not be opened. In other words, that would lose seven out of 19 courtrooms, or almost 40% of capacity. My right hon. and learned Friend is of course very familiar with the Welsh criminal courts, where he cut his teeth. I have been able to speak to the Counsel General for Wales, who is my opposite number. We had a good discussion this afternoon, and officials will keep talking, because there may be ways to mitigate this, but it really outlines why we have a capacity issue. When the pandemic hit, it slashed the capacity of our courts to hold jury trials, and it was in the Crown court that this was so crucial.
To give the mathematical quantification, in January and February 2020 we averaged about 8,000 disposals per month. I am pleased to say that last year we were averaging about 8,000 disposals per month from January  to October, so we have been getting back to pre-covid capacity. However, in April 2020 there were just 3,000 disposals, with 4,000 the following month and 5,000 the month after that. The massive hit to capacity initially was to physical space—courtrooms and so on.
Therefore the initial focus, led by my right hon. and learned Friend, was on Nightingale courts, which are particularly good for bail cases; the use of IT, so that we had remote hearings; and of course the super-courts, which have been so important for multi-handed cases, where, with multiple defendants, social distancing is even harder. All those measures were about capacity in terms of physical space or using the internet in effect to increase our capacity, but the key thing, as we have got near to pre-covid capacity, is that the labour force has become the issue. That is why the Bill is so important for the judiciary and for our constituents, because it is all about the backlog.
We have active recruitment programmes. We are doing everything possible to recruit more magistrates, more judges and more recorders—our fee-paid judiciary—to sit, which is incredibly important, but ultimately this measure is one way for us, relatively quickly, to bring some very experienced labour to bear to help us to bear down on the backlog. That is why I am grateful that all of my colleagues have welcomed the increase in the MRA to 75. Is my right hon. and learned Friend intervening? [Interruption.] I thought he was, but I apologise.

Robert Buckland: No, but I am happy to intervene. I do not want to make this too oleaginous, but the point my hon. Friend makes about capacity is a huge one. We do not have enough recorders or judges, no matter how many the Lord Chancellor signs back in after retirement. That, I am afraid, is because there has been a bit of a crisis in confidence, and therefore a lack of people coming forward to do these important roles. I reiterate what I said in my speech, which is that we need a world-class independent judiciary, and that is why the Bill is so important.

James Cartlidge: Perhaps in the days without masks it would have been easier for me to tell whether my right hon. and learned Friend was actually intervening, but he is absolutely right.
I can answer the question posed about the lifetime allowance by the Chair of the Justice Committee, my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), and by the shadow Chief Secretary, the right hon. Member for Wolverhampton South East (Mr McFadden). To clarify, the legacy judicial pension scheme is unregistered for tax purposes, so the lifetime allowance tax charge does not apply to accruals under that scheme. The new judicial pension scheme, to be introduced from 1 April, will also be unregistered for tax purposes, so no lifetime allowance tax charge will apply to that scheme either. I hope that answers the question, which is a very important one.
Diversity, which was raised by several colleagues, is incredibly important. Just as in education we have been asking teachers to return to schools to help out and at the start of the pandemic the health service had many thousands of nurses and others returning to clinical  roles, we are in effect doing the same. When we do that, however, we obviously cannot directly influence the diversity of the people who are returning to a profession or being retained for longer. As the Chair of the Justice Committee said, it is about reaching out to the recruits of tomorrow. We are taking many steps: for example, since 2020 we have been funding a two-year pilot programme of targeted outreach and support activity by the Judicial Appointments Commission, providing advice and guidance to potential candidates from underrepresented backgrounds, including those from BAME backgrounds, women and the disabled, and soliciting candidates for specific senior court and tribunal roles. In terms of magistracy, we will be launching a new online magistrates recruitment programme in the coming weeks to encourage applications from younger, more diverse cohorts. This is an important point.
The former shadow Chancellor, the right hon. Member for Hayes and Harlington (John McDonnell), the shadow Chief Secretary, the right hon. Member for Wolverhampton South East, and the shadow Work and Pensions Minister, the hon. Member for Reading East, asked the important question of where the £17 billion will ultimately be coming from. The cost of the remedy is estimated to increase pension scheme liabilities by £17 billion, so it is the scheme liabilities that increase. However, that liability will be realised over many decades. It also represents a small proportion of the total savings of around £400 billion that will arise from the wider reforms to public service pensions. To be absolutely clear, the liability will fall on the Exchequer. I hope that offers clarification.
The shadow Work and Pensions Minister asked for clarity on the issues around the ceiling breaches and so on. As the Chief Secretary to the Treasury made clear in his opening speech, no member will see a reduction in their benefits as a result of the 2016 valuations. I hope that provides some reassurance to the shadow Minister. UK asset resolution schemes currently pay out benefits of about £530 million per annum; this is a cost the Government already bear. The policy creates a more efficient situation for paying these pensions and ensuring the current schemes will have a stable benefit.[Official Report, 2 February 2022, Vol. 708, c. 4MC.]
The question asked by the right hon. Member for Hayes and Harlington and the shadow Work and Pensions Minister about the so-called pensions trap and the issue around the police has been raised with the Government by police representatives and we have been considering it. The Home Office is consulting on detailed regulations to implement a prospective McCloud remedy for the police pensions scheme, but the Government must not take action contrary to the intention of this Bill to remove discrimination identified by the courts by inadvertently introducing new unequal treatment and discrimination.
The hon. Member for Edinburgh West (Christine Jardine) and the shadow Chief Secretary both raised an important point about advice and guidance, and they were right. These are potentially complex issues. Perhaps one important point is that for many members this will hopefully be relatively straightforward; they will be presented with two options, one of which will be financially more generous. Hopefully, therefore, it will be relatively straightforward, but of course it is important that we provide guidance. Providing sufficient guidance for members to make informed decisions about their pensions is of the utmost importance and as such the Bill already requires that schemes provide members with remediable  service statements containing personalised information about the benefits available to them. This will include details of the benefits available to them under the legacy scheme and the benefits available to them if they elect to receive new scheme benefits or choose for a period of opted-out service to be reinstated. These statements will be provided to active members on an annual basis.
The hon. Lady also raised the important issue of women and the general point about fairness. The Government agree strongly with the need to ensure that the impact of the Bill is fair on members of public service pension schemes with protected characteristics, including women. A full equalities impact assessment of the Bill was conducted and published alongside the Bill’s introduction. In addition, when making the necessary changes to their scheme rules to deliver remedy, pension schemes will carry out any appropriate equalities analysis for their specific schemes in compliance with the public sector equality duty in section 149 of the Equality Act 2010.
I am grateful for the support of the former Secretary of State, my right hon. Friend the Member for Newark (Robert Jenrick), on lifting the retirement age and, we hope, its impact on capacity issues. He put his specific point well in saying that his suggestion is the very opposite of politicisation. The Government have made their position on boycotts clear. We do not hesitate to express our disagreement with foreign nations whenever we feel that it is necessary, but we are firmly opposed to local boycotts that can damage integration and community cohesion, hinder exports, and harm foreign relations and the UK’s economic and international security. Local authorities should not undertake boycotts that could undermine foreign policy, which is a matter for the UK Government alone. The Government therefore remain committed to our manifesto pledge to ban public bodies from imposing their own boycotts, disinvestment or sanction campaigns, and we will legislate as soon as parliamentary time allows.

Robert Jenrick: I am grateful to my hon. Friend for his remarks. He has just said that the Government will legislate as possible; this is the opportunity to legislate. Of course, there might be a BDS Bill at some point later in the Parliament—we do not know; there will always be pressures on the legislative timeframe—but even if there were, this is the appropriate Bill to handle the situation, because the issue arose in the 2013 Act, to which this Bill is essentially the successor. I do not expect my hon. Friend to make a commitment here at the Dispatch Box—it is clearly something that we will all have to consider in the weeks ahead—but this is the moment at which to make the amendment, should the Government wish to do so in this Parliament.

James Cartlidge: I am grateful to my right hon. Friend. As he knows, matters of parliamentary business are above my pay grade—a very humble and new one—but I hear his point, and I think he made it very well. I am sure that he has a great deal of sympathy for our position, and I simply repeat that we will legislate when parliamentary time allows.
Let me finally refer to the points made by the Chair of the Justice Committee, my hon. Friend the Member for Bromley and Chislehurst, and the former Lord Chancellor, my right hon. and learned Friend the Member for South Swindon, about the independence of the judiciary.  They are right: this Bill, including the important parts that deal with the judiciary—I make no apologies, as a Justice Minister, for focusing on those in the winding-up speech, not least given all the backlog issues—sends a powerful signal about our support for the judiciary. I believe that the independence of the judiciary is part of the competitiveness of the United Kingdom. The reason people buy our insurance in the City or trade with our banks and our service sector is that they trust this country, and they trust us because they trust the contract and they trust English law, and we should all be very proud of that.
On the basis of the contributions made today, I believe that the House agrees with the principles underpinning the Bill. I am grateful for the support of the shadow Chief Secretary and the Labour party, and indeed for that of the Liberal Democrats and other parties. I think we all agree that we must make certain that those who deliver our valued public services continue to receive guaranteed benefits on retirement on a fair and equal basis, and in a way that ensures that pensions are affordable and sustainable, and that we must also support our world-class judiciary to enable it to meet the demands of the present day and of the future. I extend an invitation to all Members who may wish to discuss these issues further with me and with the Chief Secretary before the Committee stage. I look forward to that further discussion, and I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.

Public Service Pensions and Judicial Offices Bill [Lords] (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Public Service Pensions and Judicial Offices Bill [Lords]:
Committal
(1) The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 1 February 2022.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Consideration and Third Reading
(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.
Other proceedings
(7) Any other proceedings on the Bill may be programmed.—(Michael Tomlinson.)
Question agreed to.

Public Service Pensions and Judicial Offices Bill [Lords] (money)

Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Public Service Pensions and Judicial Offices Bill [Lords], it is expedient to authorise:
(1) the payment out of money provided by Parliament of:
(a) any expenditure incurred under or by virtue of the Act by a Minister of the Crown or a government department; and
(b) any increase attributable to the Act in the sums payable under or by virtue of any other Act out of money so provided; and
(2) the charging on, and paying out of, the Consolidated Fund of any sum payable under or by virtue of the Act to or in respect of the judiciary.—(Michael Tomlinson.)
Question agreed to.

Public Service Pensions and Judicial Offices Bill [Lords] (Ways and means)

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Public Service Pensions and Judicial Offices Bill [Lords], it is expedient to authorise:
(1) the making of provision under the Act in relation to income tax, capital gains tax, corporation tax, inheritance tax, stamp duty, stamp duty reserve tax or stamp duty land tax in connection with—
(a) pension schemes established under provision made under the Act for persons who are or have been members of occupational pension schemes of bodies that were brought into public ownership under the Banking (Special Provisions) Act 2008, or
(b) the transfer under provision made under the Act of any property, rights or liabilities of any such occupational pension scheme or any such body; and
(2) the payment of sums into the Consolidated Fund.—(Michael Tomlinson.)
Question agreed to.

Business without Debate

Delegated legislation

Motion made, and Question put forthwith (Standing Order No. 118(6)),

Companies

That the draft Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2021, which were laid before this House on 28 October, be approved.—(Michael Tomlinson.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),

Marine Pollution

That the draft Merchant Shipping (Control and Management of Ships’ Ballast Water and Sediments) Order 2022, which was laid before this House on 4 November, be approved.—(Michael Tomlinson.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),

Constitutional Law

That the draft Civil Partnership (Scotland) Act 2020 and Marriage and Civil Partnership (Scotland) Act 2014 (Consequential Modifications) Order 2022, which was laid before this House on 16 November, be approved.—( Michael Tomlinson.)
Question agreed to.

Committees

Nigel Evans: With the leave of the House, we will take motions 9 to 18 together.
Ordered,

Business, Energy And Industrial Strategy

That Judith Cummins and Sarah Owen be discharged from the Business, Energy and Industrial Strategy Committee and Tonia Antoniazzi and Andy McDonald be added.

Defence

That Martin Docherty-Hughes be discharged from the Defence Committee and Dave Doogan be added.

Environmental Audit

That Dan Carden be discharged from the Environmental Audit Committee and Valerie Vaz
be added.

Environment, Food And Rural Affairs

That Dave Doogan be discharged from the Environment, Food and Rural Affairs Committee and Kirsty Blackman be added.

Foreign Affairs

That Claudia Webbe be discharged from the Foreign Affairs Committee and Liam Byrne be added.

Health and Social Care

That Ms Anum Qaisar be discharged from the Health and Social Care Committee and Martyn Day be added.

Justice

That Janet Daby be discharged from the Justice Committee and Ms Diane Abbott be added.

Procedure

That Kirsty Blackman be discharged from the Procedure Committee and Patrick Grady be added.

Transport

That Lilian Greenwood be discharged from the Transport Committee and Navendu Mishra be added.

Women and Equalities

That Anne McLaughlin be discharged from the Women and Equalities Committee and Ms Anum Qaisar be added.—(Sir Bill Wiggin, on behalf of the Committee of Selection.)

Covid-19: Award of Contracts

Motion made, and Question proposed, That this House do now adjourn.—(Michael Tomlinson.)

Neale Hanvey: While this debate is ostensibly about covid contracts, it is essentially about honour and the old-fashioned values of integrity, responsibility and prioritising the needs of those who we are elected to serve, making them our primary focus. I will look at three distinct areas of contracting where we as a Parliament find ourselves with this Government. First, I will consider the early contracting for personal protective equipment. I will then look at how hollow the Government’s “build back better”, “level up” and “take back control” slogans sound to the domestic diagnostics industry, which has been utterly abandoned and betrayed by the Government. Then I will consider the implication of the Government’s reluctance to take the advice of their own former vaccines taskforce chair, before considering where that places the UK in the context of the prevailing international strategic landscape.
The first issue is PPE. In 2020, I led a cross-party letter to the Prime Minister about the crisis engulfing the NHS as a consequence of inadequate supplies of PPE. It took until November 2020 for the signatories to receive a response. Throughout that time, the NHS remained in the grip of a shortage of PPE, and the National Audit Office conducted and published its investigation into the contracts for the provision of PPE during the early stages of the covid-19 outbreak. As a result, I submitted written questions to the Secretary of State asking which companies had been awarded contracts after being introduced through the alleged high priority lane. The response from Government asserted:
“The cross-Government PPE team considered that leads referred by Government officials, Ministerial private offices, Parliamentarians, senior National Health Service staff and other health professionals were possibly more credible and needed to be initially reviewed with more urgency. This was commonly referred to as a ‘priority’ or ‘VIP’ channel.
At the point of being prioritised these offers went into exactly the same…process”.
Sadly, that was wrong. According to Transparency International UK’s “Track and Trace” report, critical safeguards designed to prevent corruption were suspended. They identified 73 contracts worth more than £3.7 billion, equivalent to 20% of covid-19 contracts, between February and November 2020 that raised concerns about possible corruption.
By July 2021, all of the Government’s assertions would be for naught. When questioned by Members, the then Chancellor of the Duchy of Lancaster, the right hon. Member for Surrey Heath (Michael Gove), responded with the claim that
“every single procurement decision went through an eight-stage process”.—[Official Report, 8 July 2021; Vol. 698, c. 1060.]
That assurance was a fiction. That same week, the Government revised their position, admitting that the eight-stage procurement process was not in place until the end of April 2020, and that contracts awarded before that date had avoided such scrutiny.
There are many outstanding questions for the Government in that regard, some of them subject to legal action that remains sub judice, so I will observe  the rules and leave such matters to the courts. But I repeat a request I have made before. If the Government have nothing to hide, why do they not submit to a full independent public inquiry that could exonerate them?
On testing, Operation Moonshot was heralded as a means to create a world-leading and largely home-grown testing capacity, but the programme failed to launch, never mind get to the moon. In late 2020, Moonshot was subsumed into another costly fiasco—NHS Test and Trace, which was set up in May 2020 with an opening budget of £22 billion, with a further £15 billion, totalling £37 billion, over two years. What of the UK testing capacity? To date, I know of only one UK company that has been able to navigate the ever changing maze of validation. Yorkshire-based domestic diagnostic firm Avacta Life Sciences is just one of the many UK diagnostic companies that claim to have a world-beating product that is certified for use in Europe but not in the UK. Omega Diagnostics in Alva, Scotland was one of the two companies publicly promised contracts. On 15 March 2021, in a now infamous tweet to UK firms Omega Diagnostics and Mologic, Lord Bethell, then Innovation Minister in the Department for Health and Social Care, publicly promised diagnostics contracts, with the hundreds of jobs necessary to fulfil them. Those UK companies were subsequently abandoned without explanation.
The Government must explain to the domestic diagnostics industry, including to those who made investment decisions based on Lord Bethell’s public commitment, how that was allowed to happen. What action has been taken to address that disgraceful, damaging and market-distorting behaviour from a UK Government Minister? It is beyond comprehension that regulatory barriers have since been erected to further frustrate the ambitions of domestic providers while simultaneously ensuring continued UK dependency on companies based in China.
Given the recent shortage of test kits, I welcome the wider interest in this matter today, but it is beyond comprehension that the Prime Minister should stand at the Dispatch Box and accuse anyone else of running down the UK diagnostics industry when that is exactly what his Government have been doing for two years. This is not just my opinion but that of many in the industry and their investors, who have looked on in disbelief at the Prime Minister’s comments this afternoon. It is the Prime Minister who does not have a clue what is going on. Not only do tests have to secure Medicines and Healthcare products Regulatory Agency approval, but they now have to pass the coronavirus test device approvals process while Chinese imports are completely exempt. It is an utter disgrace that the Prime Minister does not know this. If MHRA acceptable usage rules were good enough for overpriced imports at the start of the pandemic, why is not full MHRA approval sufficient for these domestic tests?
In the case of Omega and Mologic, test design and validation is not really the issue. They were contracted to manufacture lateral flow devices to the Department of Health and Social Care’s specification. It was the Department’s responsibility to supply a test design to Omega for manufacture and not to supply one for approval. That makes the Department’s betrayal of Omega all the more disturbing. What is going on? To add insult to injury, the Department is now pursuing  Omega for £2.5 million because of its own failure to progress the contract. According to Omega, it would have had to capacity to deliver 1 million to 2 million tests per week had the contract gone ahead, and Mologic could potentially produce even more. Does the Minister accept that had the Government followed through with this contract as planned, we might not be so vulnerable to global pressure on tests and reagents? Does he agree that this must change, and change immediately?
Those who have been following this matter, most from beyond the Chamber, will know that I have been raising concerns about testing capacity and quality since July 2020, when we had a unique opportunity to get ahead of the curve. From my July 2020 questions to Professor Whitty about how we build capacity, to my repeated challenges to the then Health Secretary over inflated claims of the accuracy of lateral flow test devices, my concern has always been genuine. That concern is no better illustrated than in the words of Lord Bethell in an official letter of 11 December 2020, in which he stated:
“We are not currently planning mass asymptomatic testing; swab testing people with no symptoms is not an accurate way of screening the general population, as there is a…risk of giving false reassurance. Widespread asymptomatic testing could undermine the value of testing, as there is a risk of giving misleading results.”
That view was supported by the Government’s own evaluation, which found that the Innova lateral flow device missed 60% of infectious cases, including 30% of the most infectious, yet it was given unwarranted confidence by UK Government and the devolved Administrations.
UK industry insiders tell a sorry tale of ever-moving goalposts, and no clearer did that become than with the introduction of the coronavirus test device approvals regulations last year. This legislation protects underperforming imports and creates additional hurdles, barriers and costs for domestic manufacturers. In practice, it means that they can secure MHRA approval but only sell into Europe. The only conclusion I can come to is that the UK Government were, and still are, actively and deliberately sidelining their own industry and innovation in favour of cheap imports, with massive mark-ups for profits for middlemen.
It is not just the UK Government. The Scottish Government have bought into the whole debacle despite having Alva-based Omega Diagnostics on their doorstep. This has been a four-nation approach of abject failure. What about new technology beyond lateral flow devices? Lateral flow devices have a place in testing, but, like PCR, their use is limited and imperfect, and we need to plan for the future. We cannot afford to get this wrong. I have engaged with two artificial intelligence diagnostic firms, AI Diagnostics and MediChain, both developing state-of-the-art AI tests north and south of the border. Both are being ignored by the UK Government, but not by the rest of the world. How can it be that the rest of the world sees the value of UK domestic diagnostic products, both lateral flow devices and new tech, but not its own Government?
As a constituency MP, a fundamental part of my job is to bring investment, jobs and prosperity to my constituency, which I do actively and with growing success. Is that not the job of Government too, especially one whose stated objective is to build back better and  take back control? The world is clamouring for lateral flow devices and the market has been cornered by countries with far deeper pockets and much more nimble politicians than the UK. Like Nero, however, the UK Government have fiddled while they burn the domestic diagnostics industry down. It is utterly shameful. If exceptional usage agreements could be found for completely discredited Innova tests, which the United States Food and Drug Administration said were fit only for the trash, why can the UK Government not provide approval for domestic diagnostics providers now to secure domestic production and supply capacity?
On vaccine procurement, I will focus on Valneva, the vaccine company based in Livingston, Scotland. The former chair of the UK vaccines taskforce, Dame Kate Bingham, set out in her evidence to the Science and Technology Committee just before Christmas that the UK Government’s decision to cancel the contract with Valneva was “short-sighted” and “problematic on various counts”. In her Romanes lecture on 23 November at the University of Oxford, she said that the decision was “inexplicable” and
“set aside the need to build resilience in the UK’s pandemic preparedness capability through a…flexible state-of-the-art manufacturing plant…able to manufacture vaccines to any format as might be needed”.
Dame Kate told the Science and Technology Committee that the aim of the contract was to provide the UK with “flexible, state-of-the-art manufacturing capability” that could give the UK the edge over other vaccines, given Valneva’s unique ability as a whole virus vaccine to readily adapt to emerging variants. She said:
“By cancelling the contract, we lose that capability.”
In her Romanes lecture, she also remarked:
“Some might consider this behaviour as acting in bad faith.”
The chief executive of Valneva, Thomas Lingelbach, said that the Government threw it “under the bus”. The Scottish newspaper the Sunday Mail’s reporting on the issue has been second to none.
What happened to Valneva is nothing short of a scandal. The contract was pulled just before the phase 3 trial results were published, causing the share price to halve, but the results showed the vaccine to be highly effective and safe. It is the only inactivated adjuvanted whole virus covid-19 vaccine candidate in clinical trials in Europe. Inactivated vaccines are a well established, tried and tested technology that has been used over the last hundred years to vaccinate billions of people, including for seasonal flu, hepatitis A, polio and rabies. The Valneva vaccine could therefore play a vital role in tackling vaccine hesitancy among certain groups concerned about novel vaccine technology. It is also cost-effective compared with existing alternatives.
At best, the decision to cancel the contract exposes the economic and public health incompetence at the heart of the UK Government’s covid planning. At worst, it shows an act of wilful and malicious economic vandalism that has placed the existing jobs of the Livingston workforce in the balance and put a potential further 200 jobs at risk.
This is a company that did everything it was asked to do by the British Government, and more, only to have the rug pulled from under it. If that was not bad enough, its integrity has been impugned by accusations of breach of contract which may, according to Dame Kate Bingham, be designed as a means to avoid paying costs  incurred up to that point—costs incurred at the request and for the convenience of the UK Government. No wonder she concluded:
“Is this really, all in all, an example of industrial strategy of which the Government can be proud?”
Despite everything that has happened, the UK Government still have the opportunity to do the right thing. They can restore the contract, secure existing and future employment, and safeguard a cutting-edge state-of-the-art facility and manufacturing capability for the benefit of the people—not just in Scotland or the UK, but across the world.
One advantage of the vaccine is that it would allow the UK to meet its humanitarian responsibilities by supplying vaccines to COVAX without the need for a complex cold chain infrastructure. The European Commission, the Government of Bahrain and, more recently, Scottish Enterprise are in advanced discussions with the company to provide a grant of £20 million. They have shown faith in Valneva, and it is high time that the UK Government did the same.
In closing, I want to draw attention away from the mistakes of the past and on to how we conduct ourselves and how this Government must conduct themselves going forward. Covid now looks likely to be a permanent fixture. How we plan for that future has never been so important. It is not good enough to lurch from one crisis to another. We need to develop and build resilience. That means that we must be self-sufficient in testing, vaccination and treatment. We need a plan not for six months, not for a year, or even for five years, but for the next decade. Other countries are planning that far ahead and we must match them. Those who develop novel technologies that adapt will come out stronger. Those who try to get by making a fast buck on dodgy contracts will suffer, which is simply not good enough. We have a responsibility to develop the intellectual property and ingenuity to sell to the world and grow jobs and expertise here at home.
As I mentioned at the start of my remarks, the UK Government need to rediscover the values of integrity, responsibility and prioritising the needs of those whom we were elected to serve. They need to step up and support the PPE, diagnostics and biological science industries and build that capacity and capability across these islands in the coming years. Failure to do so will not be forgiven.

Michael Ellis: I am very grateful to be speaking in this Adjournment debate on covid-19 contracts and I congratulate the hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey) on his success in securing this debate.
As the hon. Gentleman will appreciate, covid-19 has presented this country with one of the most unprecedented challenges that we have faced since world war two. It has been imperative for us all to work together and to do so closely throughout the pandemic. This Government recognise the importance both of the key role of the devolved Administrations, and of our working together as one United Kingdom. It is thanks to that close collaboration and co-ordination that we have been able, as a United Kingdom, to achieve enormous success in, for example, our vaccine roll-out programme, where we are leading the world, and I hope that he will recognise that.
The hon. Gentleman mentioned personal protective equipment. The reality of the matter is that, since 25 February 2020, we have secured the production of more than 16.5 billion items of PPE, the majority of which have either been delivered or are on their way and enable us to meet the future needs of health and social care workers. Since 9 April 2020, more than 5.4 billion items of PPE have been ordered through the e-portal. We have also established a safety stockpile of all covid-critical PPE, with a tremendous contribution from UK manufacturers, to ensure that we can continue to provide an uninterrupted supply to the frontline. We have done so despite the fact that pressure from almost every country in the world put enormous strains on supplies of PPE. Therefore, we are working extremely hard to ensure that resilience and sustainability is built into long-term planning for UK manufacturers. The PPE cell, as it is called, has now developed a UK-based supply chain for PPE, and that is a complete turnaround from the situation before covid. We have been building UK manufacturing capacity and we have been doing so by signing contracts with more than 30 British-based companies for the provision of 3.9 billion items of PPE.

Neale Hanvey: rose—

Michael Ellis: I will just make some progress, if I may.
There has been an enormous effort and an enormous success, despite considerable international pressure, in establishing those routes and chains and developing them to supply the vast quantities that have been required by this country. We have done that with the assistance of more than 30 UK-based companies, which should be thanked for their work and their efforts.
There is a high-priority lane for PPE, and the high-priority mailbox was set up at a time when this country and our citizens were in need of urgent help. Many suppliers and individuals were rightly passing on offers of support direct to local MPs, both Government and Opposition MPs, and passing on their suggestions to healthcare professionals, civil servants and anyone they knew. They were right to do so to both Labour and Conservative MPs across the House, because they were seeking to assist the national interest in what was at the time a national emergency. They were keen that the Government procurement effort should know what was available.
The mailbox at the time allowed MPs, Ministers and senior officials to direct those offers to a dedicated location. The high-priority lane was simply one way of helping us to identify credible opportunities for PPE procurement, so that frontline workers received the protection they needed as fast as possible. It was in the national interest, it was a good thing to do and people should be thanked for their help in that regard.
Ministers were not involved in the decision to establish the high-priority lane; it was an internal process, if hon. Members would like to know, led entirely by officials. In order to demonstrate our commitment to transparency, we said on 17 November that the Government would publish, and we did publish, details of the suppliers identified through the high-priority lane and those who referred them through that route.

Neale Hanvey: I reflect on the comments the Prime Minister made to me during Prime Minister’s questions on 18 March 2020, when I asked him whether the  priority should be the prize of beating covid rather than patents and profits. Does the Minister not share my concern that there have been significant mark-ups on a range of products, from PPE to lateral flow devices, so that companies that prior to the pandemic were in deficit now enjoy enormous profits—in the multi-millions of pounds—for doing little more than purchasing and passing on products to the UK Government and trousering significant profits? Does that not disturb him?

Michael Ellis: I do not recognise the hon. Gentleman’s characterisation of business as some sort of enemy of the people, which is what he is effectively saying. Profit is not a dirty word, except possibly to the extremists on the far left. The reality of the matter is that we have sought the support of UK companies and they have come good on that support. They have therefore assisted the British people and our national health service by supplying PPE when it has been needed, despite enormous international pressures and demands around the world for those supplies.
I am not going to get into any individual characterisation of any particular cases, because I do not have the facts that the hon. Gentleman contends available to me personally. As a general principle, however, we have sought assistance and we have received that assistance, and that has been in the national interest.
The hon. Gentleman mentions the National Audit Office report, for example. That report, “Investigation into government procurement during the COVID-19 pandemic”, which was published in November 2020, set out the facts relating to Government procurement during the covid-19 pandemic, covering the period up to 31 July. The report recognised that the Government needed to act with “extreme urgency” to procure large quantities of goods and services quickly, which of course is common sense, and
“frequently from suppliers it had not previously worked with”.
The NAO report that the hon. Gentleman mentions recognised that in a “highly competitive international market” we the UK had to deal with companies we had not previously worked with and we had to do so at speed, under considerable pressure. The NAO found “no evidence” of ministerial
“involvement in procurement decisions or contract management”,
so I hope he will read the report he has quoted.
I am conscious of the time, so I will make further progress. The hon. Gentleman talked about testing equipment. There is currently no shortage of lateral flow tests.
There is enough stock to meet demand across the range of distribution channels, but tests are made available via home delivery channels each day. If they are not available at a specific time, people are encouraged to revisit the site later as more become available. We are issuing millions of rapid tests per day via home delivery, with record numbers distributed in recent days. We must balance the demands on the delivery network carefully, as the hon. Gentleman will recognise, to ensure that PCR and lateral flow tests can be delivered to homes across the country. We have worked with Royal Mail, for example, to increase capacity for home delivery of testing kits to 900,000 a day in response to unprecedented  demand, and to ensure that even more people can order PCR and lateral flow tests directly to their home. That is a monumental achievement, and the UK is leading the world in this area.

Neale Hanvey: That is not true.

Michael Ellis: I know that the hon. Gentleman wants to be critical, because he wants to be critical of the UK, but it is leading the world. One and a half million tests a day—we spent £37 billion on Test and Trace. We have increased deliveries by 100% from 120 million to 300 million in the month of December, and that is more than any other country in the world. We have tripled the supply for January and February from 100 million to 300 million a month, so the UK’s testing programme is the biggest in Europe, with over 400 million tests carried out to date—twice the number in France and more than four times the number in Germany. The split of the tests sent each day—PCR and lateral flow tests—varies according to demand for PCR tests.

Neale Hanvey: Will the Minister give way one more time?

Michael Ellis: I am conscious of the time. The hon. Gentleman had quite some time for his contribution, but I will give way to him a second time.

Neale Hanvey: I am grateful to the Minister for giving way again—he has been a great sport.
I have one short question about the volume of testing devices. Does he have any indication of what percentage of the test devices that he has touted as the greatest number in the world were manufactured here in the UK by domestic diagnostic companies?

Michael Ellis: In times of urgency, we wish to source from the most immediately available sources. I do not have the answer to the hon. Gentleman’s question, but no doubt it can be provided later in writing. It goes without saying that we would wish to do everything that we can to provide support, but also to deal expeditiously with urgent demand. As well as the rapid expansion in delivery capacity to people’s homes, the UK Health Security Agency has increased test availability at pharmacies and so on. We want to ensure that there is a reliable test supply over the coming weeks. That is the most important thing, and we are working to procure hundreds of millions more.
As I said at the beginning of my speech, what we have learned from covid-19 is how the UK Government can work strategically and at scale to save jobs and support communities across the UK. We are all on that side—that is what we want to do. I want to support people in the hon. Gentleman’s constituency, and I am sure that he would want to support people in constituencies around this country, working alongside the devolved Administrations to keep every citizen safe. That is our priority, and we want to support people no matter where they live in the United Kingdom. No part of the UK could have tackled this crisis alone. The Government have provided £400 billion of direct support for the economy during the pandemic to date. The United Kingdom has delivered, and is continuing to deliver.
I would say in conclusion that I am grateful for the valuable points raised by the hon. Gentleman throughout his remarks, but the Government are taking decisive   action to reform the public procurement rules to create a system that is simpler, more open, fairer and more competitive. We are working on that alongside the full inquiry into the covid-19 response, which will take place this year.
Question put and agreed to.
House adjourned.